THE Tanzania Investment Bank (TIB) is planning to transform its structure that will see the bank create subsidiary banks under the same TIB umbrella.
Under this expected new structure, the bank will have TIB Development Finance Institution (TIB DFI) and TIB Corporate bank. According to TIB Managing Director Peter Noni, the two banks will be operating under the same roof, but cooperating closely and managed differently.
“This will be our focus as we extend our network coverage across the country. We will have both the DFI bank and corporate bank under the same roof. In terms of accounts, the DFI bank accounts will be handled separately from the corporate bank accounts. We will however have a group DFI board,” Noni told journalists.
He said the bank’s management is set to table the proposed structure for Government’s approval by the end of June this year and if all goes well, the new structure will be effective immediately after the approval.
Noni made the revelation shortly after concluding the Association of African Development Financing Institutions (AADFI) annual General Assembly held in Arusha on Wednesday.
According to Noni, the reformation will help the bank to properly manage its development financing plans as well as serve the corporate customers adequately.
“The transformation we are planning to do will empower our bank to serve its purpose of financing development projects by partnering with the African Development Bank (AfDB) and other financial institutions, not forgetting the Small and Medium Enterprises (SMEs) who seriously need funding to ensure first economic transformation in our country,” said Noni.
The Bank of Tanzania (BoT) Governor Prof. Benno Ndulu while closing the meeting said it is difficult for Tanzania to convince multilateral institutions that the country needs to set up a development fund institution because of the bad experience of lack of sustainability many developing countries had.
“It is important that we have such institutions so as to enhance competitiveness in private sector and development sectors. It’s no doubt that there is a large infrastructure gap in Africa especially in roads, telecommunications and electricity. Africa needs more than USD 80 billion annually to ridge this gap,” he said.
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