Chinese Bank Opens Door in Dar

According to BoT, the new bank has no connection with any chinese bank!

THE Bank of Tanzania has licensed China Commercial Bank (CCB), to operate in the country bringing to over fifty, the number of financial institutions in the country.

According to the Central Bank, (BoT), the new bank has no banking affiliation with another bank in China or Tanzania. The BoT Director of Banking Supervision, Mr Agapiti Kobelo, said CCB were on final stages of commencing operations with head quarter in Dar es Salaam.

Late last year BoT Governor, Prof Benno Ndulu, told Daily News that the CCB was a new bank formed by Chinese and Tanzanian businesspersons--with no additional link.

"It has no direct connection with any existing bank in China, except for some shareholders who are Chinese," Prof Ndulu said. Analysts suggest the bank could not have come at a better time.Tanzania and China enjoy long standing friendship and cooperation thriving on the strong foundations built by the founding fathers of the nations, namely Mwalimu Julius Nyerere and Mao Zedong.

Bilateral trade between the two countries amounted to 3.7 bn US dollars in 2013 while Chinese investments in Tanzania reached 2.5bn US dollars with more than 500 Chinese companies doing business in the country.

The licensing of a new bank means one more player to the industry and it is believed that its entry will contribute in increasing the level of financial inclusion and also provide employment to Tanzanians.

A Global Microscope 2014 by The Economist Intelligence Unit shows that Tanzania is the first country in Sub-Saharan Africa and ninth globally for demonstrating sound financial inclusion.

Rapid growth in the number of Tanzanians with access to financial services shows it will reach 50 per cent target by 2016 as set by the National Financial Inclusion Framework.

In Sub-Saharan Africa, Tanzania scored 56 out of 100 points followed by Kenya and Rwanda which scored 55 each. Ghana, Nigeria and Uganda scored 51, 50 and 50 points respectively. The average score for Sub- Saharan Africa is 44.

Source: allAfrica