The Vice President of the United Republic of Tanzania, Dr. Philip Mpango, emphasized that the opening of bank branches close to the people would significantly help in eliminating the presence of private moneylenders, commonly known as "kausha damu."
These moneylenders, who charge exorbitant interest rates, are notorious for mistreating and violating the dignity of borrowers through the seizure of their assets.
As he stated, "The establishment of these branches will not only address the issue of high-interest rates but also protect our citizens from such exploitative practices."
Dr. Mpango made these remarks during the inauguration of the NMB Bank branches in Chanika and Kinyerezi, both located in Dar es Salaam.
He added that the opening of these branches would contribute to the nation's development, emphasizing, "This initiative will have a broader impact by generating taxes and creating both direct and indirect employment opportunities."
The Vice President also highlighted the benefit of these bank branches in ensuring safer transactions, saying, "With these branches, we will ensure safer transactions for essential services like paying water and electricity bills, school fees, and purchasing goods."
Dr. Mpango further called on NMB Bank to continue addressing various social challenges, particularly in sectors such as health and education.
He stated, "Corporate social responsibility is the cornerstone of strong and productive relationships between banks and the communities they serve."
He also recognized the importance of expanding the bank's services through agents, noting, "Increasing the number of agents will help generate jobs for young people, who are vital stakeholders in this service."
Moreover, the Vice President called for greater efforts in enhancing financial literacy, which he noted is still lacking among the general population.
"We must focus on improving financial education, especially in rural areas, where the understanding of financial matters is limited," he urged.
He also called on NMB Bank, in collaboration with the Bank of Tanzania and the Tanzania Bankers Association, to launch more programs that would promote financial literacy.
"It is critical that we work together to provide better education on financial matters, particularly for people in rural areas," he added.
He also spoke on the need to reduce the cost of digital banking services, which some find prohibitive. "We must explore ways to lower the costs of digital banking services, as this will encourage more people to use them, thus contributing to the government's efforts to reduce cash transactions and ease payment systems," Dr. Mpango explained.
The Vice President concluded by acknowledging the growth of the banking and financial sector, which has shown significant progress.
"The sector's contribution to the national GDP has increased substantially from 2.3% in 2019 to 8.6% in 2023," he said.
He urged NMB Bank to reinforce its strategies to ensure it remains resilient against global challenges such as economic shifts, pandemics, and wars.
"Now is the time for NMB to be even more prepared to withstand global shocks and continue contributing to our economic growth," he asserted.
On her part, NMB Bank's CEO, Mrs. Ruth Zaipuna, shared that recognizing the limited access to banking services, particularly in rural areas, the bank has initiated a strategic plan to expand its services through agents and technology.
"We are committed to ensuring that every village in Tanzania has at least two NMB agents, bringing banking services closer to the people," she said.
Additionally, Mrs. Zaipuna spoke about the bank's involvement in promoting clean cooking energy, stating, "NMB Bank is dedicated to supporting clean cooking energy projects and has already allocated over 100 billion Tanzanian shillings to help distribute clean cooking energy to Tanzanians."
