ZANZIBAR President Dr Hussein Mwinyi has said his government plans to double development projects in this financial year, after securing the syndicated loan facility worth 200 million US dollars (about 470bn/-) from NMB and National Bank of Commerce (NBC).
“We have secured a 200 million US dollars loan tranche from our two local banks this year and this is the first of its kind in the history of Zanzibar,” Dr Mwinyi said.
He added, “There is no reason for doubts on how we will re-pay the loan as we have already drawn strategies to ensure that the loan is paid within the stipulated time.”
Through this exclusive syndicate by the two local banks, NBC Bank assumed the role of Mandated Lead Arranger (MLA) and underwriter, while NMB Bank is a co-financier for the syndicated facility that will be paid back within an eight-year period.
President Mwinyi highlighted that the credit facility would usher in transformative improvements in social services and infrastructure, ultimately enhancing living standards, creating more employment opportunities and fostering sustainable economic development, all in line with the government’s strategic vision.
“Our plan is to continue working around the clock to ensure that we finalise all the priority development projects that have been earmarked before the 2025 general election,” he said.
The loan proceeds will be directed towards various social services and infrastructure projects, encompassing healthcare facilities, educational institutions, transportation networks, and community development programmes.
By investing in these vital sectors, Zanzibar government aims to enhance the overall quality of life, promote access to essential services, and facilitate long-term economic growth in the region.
Speaking shortly after the signing of the syndicated loan agreements during a brief function held at State House in Zanzibar, NBC Managing Director, Theobald Sabi expressed delight in bank’s participation in the syndicated loan echoing the same sentiments that it will be instrumental in achieving the Zanzibar’s vision for inclusive growth and sustainable development.
Mr Sabi added that the credit arrangement signifies a remarkable achievement towards the common objectives of community empowerment, inclusion and enhancing the well-being of the people.
He emphasised that the credit arrangement represents a significant milestone toward shared goals of sustainable development and positively impacting people’s lives.
NBC bank remains committed to fostering economic progress and social welfare through responsible financial practices, catalysing sustainable economic growth.
He said NBC as the mandated lead arranger (MLA), Underwriter, Book runner and Security Agent worked with NMB as a co-lender on this syndicated facility with amortising eight-year period and will be exclusively syndicated to local banks in Tanzania.
The bank’s ownership structure comprises ABSA Group, the government of Tanzania and the International Finance Corporation (IFC).
On his part, NMB’s Chief Finance Officer Juma Kimori described the syndicated loan as a landmark achievement for the banking and finance industry in the country.
“We are honoured to be part of this significant undertaking to support the Zanzibar government. Our participation in this arrangement underscores our deep commitment to support the development and well-being of the Zanzibar community,” Kimori said.
The loan seeks to fund social services and infrastructure development initiatives that aim to enhance livelihoods, drive economic growth, and foster sustainable development to the Zanzibar community.
Mr Kimori added, “We believe this loan, will help enhance social services and foster sustainable economic growth hence creating lasting benefits for the people of Zanzibar and contribute to their prosperous future.”
During the event, he reiterated the bank’s commitment to continue working closely with the Zanzibar government adding that the bank apart from supporting various development projects has been instrumental in investing in Community Social Investments (CSIs) as part of its commitment to create a shared value for all its stakeholders including communities where the bank operates.
“As a bank, we are committed to fully support realisation of Zanzibar government’s Blue Economy Agenda through provision of seamless banking solutions,” he said.
The Minister of State, Office of the President, Finance and Planning, Dr Saada Mkuya during the event said the syndicated loan re-affirms the Zanzibar government’s commitment to continue securing alternative local sources to fund Government’s development projects.
“We approached all the local financiers in our quest to secure alternative sources of funds and we are glad that NMB and NBC banks showed interest. We are glad that today we are signing the syndicated loan agreements after almost six months of negotiations,” Dr Mkuya said.
She noted that the secured loan will be spent in accordance with the rules and regulations for financial policy management.
