BY THE GUARDIAN REPORTER
23rd October 2013
Initially, the establishment was scheduled to begin early this year but has been postponed to 2015.
Speaking to this paper on Monday over the phone the Executive Secretary of Tanzania Federation of Cooperatives (TFC), Willigis Mbogoro, said already they have started an exercise to collect 15bn/- as one of the conditions set by the Bank of Tanzania (BoT) before the bank is established.
“We are now selling our shares at all branches of National Microfinance bank (NMB) countrywide,” he said.
He said completion of the exercise would enable the bank to start operations later on in the year 2015.
According to BoT regulations, any fully fledged financial institution must deposit such amount of money as guarantee for unforeseen events before starting operations.
He said the price for each share is 1000/- and individual members of Saccos are allowed to buy ten of them.
He said the minimum shares to be bought by Saccos are 5,000 equivalent to 5m/- while for unions or federations the number is set at 25,000 shares equivalent to 25m/-
Currently, Cooperative movement comprises of about 6000 cooperative societies having about 700,000 members.
“We are optimistic that small and large cooperatives would buy shares which would enable us to establish our bank,” he said.
Mbogoro did not disclose the amount collected so far since the exercise started few months ago but noted that when the exercise is completed, they would start procedures to establish the bank to be headquartered in Dar es Salaam.
“When all things go as planned, the bank would commence its operations one year from now,” he said.
The bank would start with four branches in regions where they have cooperatives unions.
The bank’s Board chairman, Hassan Wakasuvi, was quoted by this paper as saying once the bank becomes fully operational, clients will access loan facility at reduced interest rates which will attract potential loan applicants.
He encouraged cooperative members to buy as many shares as possible before and after launching of the new bank to upkeep the financial institution to live up to its vision and ideals of serving its clients.
He urged non-cooperative members to join the Bank by buying shares which would enable them to access loan facilities to improve their lives through setting up of viable projects, calling on all loan applicants to duly service their loans so as to make them creditworthy.
He also lashed out at farmers who tamper with their crops, including deliberate adulteration, which they disposed of in the market, saying that was against marketing ethics.
Instead, he tipped off crop producers on how to win the hearts of potential buyers by producing high quality crops to fetch better prices in the markets.
Wakasuvi commended the government for its decision to waive tax on some imported agricultural implements which was a relief to farmers, praying for more waivers to other agricultural machinery to boost crop production.
SOURCE: THE GUARDIAN
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