The Bank of Tanzania (BoT) has issued two licenses to TIB Development Bank Limited and TIB Corporate Finance Limited, which is a designated Commercial Bank subsidiary of the former.
TIB Development Bank Managing Director, Peter Noni told the press yesterday at the 39th Dar es Salaam International Trade Fair that the licenses have been issued by BoT in June 2015 for the Development and Corporate bank to engage in development financing and commercial banking activities respectively. He said TIB Development Bank is currently seeking to raise Sh. 390 bn/- to reach sh 500bn/- in its five-year plan for loaning in development projects.
According to him despite the inadequacy of capital, after the transformation TIB Development Bank has continued to disburse loans to its customers with expectation of doubling it to 200bn/- this from 100bn/- disbursed last year.
“The government has been injecting capital to increase its capacity to finance more development projects and it is currently injecting 30bn/- annually to boost the bank’s financing capacity,’’ he said
He added that the bank had earmarked agro-processing activities because over 70 per cent of the population is engaged in farming activities. “Agriculture accounts for 38 per cent of our bank’s loan profile,’’ he mentioned.
Some of the areas that has benefited from TIB Development Bank loans include sugar farms and factories, cotton, coffee processing, cashes nut processing, packaging and even storage.
Other sectors are tourism by 14 per cent, manufacturing by 11 per cent, manufacturing by 11 per cent, real estate is 9 per cent. Oil, gas and electricity get up to 9 per cent while trade is 9 per cent.In the oil and gas sector, the bank has issued 26million US dollars to Wentworth Resources Limited, the company dedicated to oil and gas exploration to invest in gas transmission infrastructure. To the Tanzania Railway Limited (TRL), the bank has injected 12bn/- as working capital and 18 million US dollar for remanufacture of locomotives.
TIB Development Bank that is a wholly state-owned institution was created in 2013 following the transformation of former Tanzania Investment Baank into a two-tier group incorporating a development finance institution and a corporate bank. With the current status as per BoT certification given to TIB Development Bank and TIB Corporate Banking, the bank hopes to reduce the burden of government institutions and agencies depending on Treasury to implement their development projects.
“This is a great achievement of President President Kikwete who initiated the project and is now retiring after it is completed. We are optimistic that once it is fully funded, it will support various development activities,’’ he said
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