Govt asks CRDB to introduce industrial window

Govt asks CRDB to introduce industrial window

GOVERNMENT has advised CRDB Bank, one of the largest lenders in the country, to set up a special industrial window to stimulate investment in the country.

The government threw the advice over the weekend, saying it was high time for the lender to set up the window for small and large industries to access capital at affordable and special terms.

Minister of State in the Prime Minister’s Office (Investment), Mr Geoffrey Mwambe, said the CRDB has been at the forefront of supporting the country’s development agenda and asked the bank chief to persuade others to join hands.

“I will organise a meeting with [Tanzania Bankers Association (TBA)] to discuss this in more detail,” Minister Mwambe said. CRDB Chief Executive Officer Abdulmajid Nsekela is also the TBA Chairman.

The bank last Saturday organised a virtual forum on investment, mainly of portfolio investment, which was attended by 3,000 viewers.

The Minister also said in order for the private sector to make a significant contribution to the development of the nation, a conducive environment needs to be created to enable people and companies to realise their investment returns.

For the government, he said, the government continues to improve the business environment by eliminating bureaucracy and reducing overlapping taxes and levies to cut down investment costs.

“If CRDB enables these investors to invest in industry, the benefits are enormous not only to the economy but also to even the bank profit,” the Minister said.

Also, the government wants to overcome the tendency of exporting raw material and embarked on project of processing the raw material locally and exporting semi or finished goods.

“The plan, for instance, in case of cotton, the strategy is to stop exporting raw cotton in next three years,” Mr Mwambe said. Mr Nsekela said the seminar aimed at seeing more Tanzanians understand investment and its opportunities and the bank services that will turn them to be good investors.

“Most ‘wananchi’ are out of the formal financial system because they lack enough education and awareness,” Mr Nsekela said. However, the bank, vowed to continue with such seminar, and believed the forum will enable many to access financial services and enjoy the opportunities available for direct and portfolio investments.

CRDB Chairman Dr Ally Laay thanked Minister Mwambe for inviting the bank to co-operate with the government in implementing strategies to stimulate investment and assured him that the bank will develop a policy that will guide and regulate the setup of the industrial window.

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