BoT ready to offer advice on bank establishment in Dongobesh

Finance Deputy Minister, Mwigulu Nchemba

The Bank of Tanzania (BoT) is ready to offer professional guideline on how to set off a community bank in Dongobesh Ward, Manyara region which will also cater for other neighbouring wards in the region.

 

Finance Deputy Minister, Mwigulu Nchemba, said this during questions and answer session in the National Assembly here yesterday.

 

He was responding to a question by Special Seats MP (CCM) Martha Umbulla who wanted to know government plans on the establishment of a bank in the said word.

 

"Dongobesh has all required surroundings for the establishment of a bank…if established, the bank will also cater for other wards such as Hydom, Maretadu, Manghang, Tumati, Endamitay, Bashay and Yaedachini, she noted. 

 

Nchemba responded: "It is the intention of the government not to get involved in any business...We will only create conducive environment so as to attract private sector for investment in various fields including the banking sector. Moreover, through Central Bank, the government will provide professional consultation to the said ward as well as other areas that are ready."According to him, the government will keep on influencing the banking sector to extend their financial services to urban and rural areas by opening branches, agencies cell phone companies as well as other means that would be easy and at reasonably cost.

 

In another development the government has amended the legislation concerning the improvement of  retirees' pension  in order to accomplish her promise to honour and care for retired civil servants.  

Makongoro Mahanga, the Deputy Minister for Labour, Employment and Youth Development was responding to Mtambile MP (CUF) Masoud Abdallah Salim who wanted to know how the government had fulfilled the promise.

 

"New regulations that has been in use since July last year, has significantly improved retirees' benefits which include accrual rates for all pension funds has been modified thus increasing what they receive from 60 - 67 per cent to 72.5 per cent," he clarified.

 

Adding: "And this is happening as there were many grievances especially from NSSF, PPF and GEPF members. Therefore, apart from the said pension funds, pensioners from PSPF and LAPF will also benefit from the increase."

 

Other improvements include the indexation of pension benefits so as to conform to the inflation. "This is due to the clause number 32(a) of the Act No:8 of 2008 which directs the validation of benefits so as to help retirees to live decently."

 

The pension funds have been directed to use 3 years salary average instead of 5 years as this will help pensioners to have a good package.

SOURCE: THE GUARDIAN