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Mwanza traders set for good times

TIB Managing Director, Peter Noni said this at the weekend during the official launch of the bank’s Lake Zone offices and Branch located at PPF Plaza along Kenyatta Road in Mwanza, which will serve Mwanza, Simiyu, Kagera, Kigoma, Geita, Shinyanga, Tabora and Mara regions.

Mr Noni said as of June 2012 the bank’s net asset value also increased to 314bn/- from the previous 305bn/- as of December 2011. “Loan portfolio also grew to 247bn/- as of August 2012. Among that loan, 163bn/- is a medium and long term loan, which is 66 per cent of the total loan.

A customer who takes a long term loan can pay back the loan within a period of up to 15 years depending on the terms of his/her project,” Noni said. He mentioned that as at 2011, loans issued to the agricultural sector and value addition sector were 45 per cent of the total loans issued.

“In the year 2011, projects funded by TIB created 824 permanent jobs and more than 8,340 people got employed in non-permanent jobs,” he said.

The TIB boss said his bank’s strategic plan targets issuing loans of up to 1,099bn/- by 2015. “We expect a massive increase in industrial loans due to our desire to invest more in the processing sector in order to increase market penetration of our local farmers’ products, a move that will ensure value addition on our agricultural products hence putting our farmers in a good position of getting good price for the product and therefore improving their income,” said Mr Noni.

He said for their industrial investment to have meaning, the Government will play a bigger role by investment in energy and transport infrastructure as well as increasing TIB’s capital.

Mr Noni said his bank is in the process of starting equity financing, which is an additional product from its services it offers, which include; financial leasing, loans to farmers through its agricultural window, technical assistance to its clients and numerous other products which are found under its Corporate banking pack.

For his part, the bank’s Board Chairman, Professor William Lyakurwa said in a statement that TIB intends to issue loans to City and town Councils to support them in improving infrastructure like markets, storage facilities, electricity, build industrial areas so as to ensure that more produce is processed in order to add its value, stored properly and finally sold at a good price.

“TIB also gives priority to planned human settlements in our cities and towns; plans that should ensure that enough space is set aside for infrastructural expansion, construction of residential apartments, commercial and industrial area,” said Prof Lyakurwa.

Prof Lyakurwa said the launch of Lake Zone Branch and Offices demonstrates TIB’s commitment to being the premier development bank that promotes economic growth by offering complete financing solutions to clients as well as giving them unmatched corporate financial services.

Mwanza Regional Commissioner Eng Evarist Ndikilo, who was the official guest at the launch, said TIB was looking for partners to invest in processing industries, which will add value to cotton produced in the Lake Zone, and also cotton oil processing.

He said the Government was happy with TIB’s performance and will be given enough support in order to help it achieve its goal of pushing the wheels of development and standing out to be a partner for growth.

Established in 1970 by an Act of parliament as a development financial institution, TIB added an agriculture lending window in 2010 after President Kikwete ordered the Bank of Tanzania to channel money recovered from External Arrears Payment Account defaulters to TIB for lending to the sector.

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Author: Correspondent in Mwanza

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