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- Aug 9, 2019
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Arusha. The Bank of Tanzania (BoT) has issued an approval for CRDB Bank Plc to extend its footprints to the Democratic Republic of Congo (DRC), it was announced here during the weekend.
This is in line with the government’s desire to see Tanzanian companies expanding to other countries and reap the benefits that come with costs that the country pays in fees to regional trading blocs such as the Southern African Development Community (Sadc) and the East African Community (EAC).
Gracing the CRDB Bank Plc shareholders’ financial literacy seminar here on Friday, Finance and Planning minister, Dr Mwigulu Nchemba said commercial banks must look beyond Tanzania’s boundaries if they were to capitalise on the country’s reputable history in the independence of a number of countries in Africa as well as its (the country’s) strategic geographical location.
“I am glad to note that CRDB has a branch in Burundi. But, why can’t we have similar branches in the DRC, Zambia, Malawi, Zimbabwe and even in South Sudan where we sell our maize?” enquired Finance Minister Nchemba.
He said with its rich history, he found no country in the region that will not easily allow a Tanzanian corporate entity to set up a subsidiary there.
“We also have a sea port. It makes sense if someone in the DRC, Zambia, Malawi and Zimbabwe among others could simply make all their payments – via a Tanzanian bank – right there and only come to Dar es Salaam to pick their goods,” he said.
He called upon the Bank of Tanzania (BoT) to think of facilitating and be lenient with its usual regulatory approach. “That is also how we can benefit from the colossal sums of money that we pay to regional blocs like the EAC and Sadc… You should focus more on facilitation instead of regulating.
“From the way our population grows, increased regulation and controls will only lead to a narrow tax base, high inflation rate and slow economic growth,” he said.
But in an apparent response to the call, the CRDB Bank’s board chairman, Dr Ally Laay, told the bank’s Annual General Meeting (AGM) on Saturday that the the Central Bank had actually cleared the way for the lender’s expansion into the DRC.
“I am glad to announce here that we have received the BoT’s approval for our planned expansion to the DRC. We thank for the BoT for this,” he told shareholders at the Arusha International Conference Centre.
CRDB Bank Plc’s DRC expansion plan was approved by the bank’s board three years ago in the lender’s wider goal of becoming a regional financial powerhouse.
The BoT’s deputy government (Financial Stability and Deepening), Dr Bernard Kibesse confirmed the endorsement, saying the central bank’s role was to facilitate the process. In his remarks, the CRDB Group’s managing director, Mr Abdulmajid Nsekela said all was set for its entry into the DRC and that actual expansion should be undertaken before the end of this year.
“We have been challenged to look beyond Tanzania. By the time we meet here next time, we will be talking of our presence in the DRC,” he said.
The DRC becomes the second regional footprint for CRDB Bank Plc after Burundi where it has been operating since 2012.
Apart from the Burundi subsidiaries, the CRDB Bank Plc also operates an insurance brokerage firm and a microfinance institution among other investment projects.
According to the CRDB Bank Plc’s chief financial officer, Mr Frederick Shekanabo, subsidiary companies contributed a cumulative 9.0 percent of the group’s Sh165 billion-profit after tax in 2020.
Profit for the Burundi subsidiary grew by 75 percent year-on-year, rising to Sh11.2 billion.
This is in line with the government’s desire to see Tanzanian companies expanding to other countries and reap the benefits that come with costs that the country pays in fees to regional trading blocs such as the Southern African Development Community (Sadc) and the East African Community (EAC).
Gracing the CRDB Bank Plc shareholders’ financial literacy seminar here on Friday, Finance and Planning minister, Dr Mwigulu Nchemba said commercial banks must look beyond Tanzania’s boundaries if they were to capitalise on the country’s reputable history in the independence of a number of countries in Africa as well as its (the country’s) strategic geographical location.
“I am glad to note that CRDB has a branch in Burundi. But, why can’t we have similar branches in the DRC, Zambia, Malawi, Zimbabwe and even in South Sudan where we sell our maize?” enquired Finance Minister Nchemba.
He said with its rich history, he found no country in the region that will not easily allow a Tanzanian corporate entity to set up a subsidiary there.
“We also have a sea port. It makes sense if someone in the DRC, Zambia, Malawi and Zimbabwe among others could simply make all their payments – via a Tanzanian bank – right there and only come to Dar es Salaam to pick their goods,” he said.
He called upon the Bank of Tanzania (BoT) to think of facilitating and be lenient with its usual regulatory approach. “That is also how we can benefit from the colossal sums of money that we pay to regional blocs like the EAC and Sadc… You should focus more on facilitation instead of regulating.
“From the way our population grows, increased regulation and controls will only lead to a narrow tax base, high inflation rate and slow economic growth,” he said.
But in an apparent response to the call, the CRDB Bank’s board chairman, Dr Ally Laay, told the bank’s Annual General Meeting (AGM) on Saturday that the the Central Bank had actually cleared the way for the lender’s expansion into the DRC.
“I am glad to announce here that we have received the BoT’s approval for our planned expansion to the DRC. We thank for the BoT for this,” he told shareholders at the Arusha International Conference Centre.
CRDB Bank Plc’s DRC expansion plan was approved by the bank’s board three years ago in the lender’s wider goal of becoming a regional financial powerhouse.
The BoT’s deputy government (Financial Stability and Deepening), Dr Bernard Kibesse confirmed the endorsement, saying the central bank’s role was to facilitate the process. In his remarks, the CRDB Group’s managing director, Mr Abdulmajid Nsekela said all was set for its entry into the DRC and that actual expansion should be undertaken before the end of this year.
“We have been challenged to look beyond Tanzania. By the time we meet here next time, we will be talking of our presence in the DRC,” he said.
The DRC becomes the second regional footprint for CRDB Bank Plc after Burundi where it has been operating since 2012.
Apart from the Burundi subsidiaries, the CRDB Bank Plc also operates an insurance brokerage firm and a microfinance institution among other investment projects.
According to the CRDB Bank Plc’s chief financial officer, Mr Frederick Shekanabo, subsidiary companies contributed a cumulative 9.0 percent of the group’s Sh165 billion-profit after tax in 2020.
Profit for the Burundi subsidiary grew by 75 percent year-on-year, rising to Sh11.2 billion.
