BancABC launches in Tanzania

This article was written by Our reporter on 17 May, at 04 : 25 AM

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ZIMBABWE Stock Exchange listed BancABC of ABC Holdings Limited recently inaugurated its branch in Arusha, Tanzania.

The bank intends to give greater emphasis to the agricultural sector through increasing loans to farmers and investors in the industry

In Tanzania BancABC is keen to become competitive in the retail and small and medium enterprises (SMEs) banking sector.

It has secured a loan of $10 million from the World Business Capital (WBC) Inc to that effect.

The WBC facility to BancABC, payable in 10 years, is guaranteed by the Overseas Private Investment Corporation (Opic) — a private sector investment support arm of the United States government

“This Opic–supported funding will put BancABC Tanzania in a strong position to support the SME sector in Tanzania. The partnership of WBC/Opic and BancABC is a strong vote of confidence in the Tanzanian economy,” BancABC group chief executive officer Douglas Munatsi, said in Dar es Salaam on Tuesday.

Special attention will be given to the development of products for the SMEs segment, given its potential to create employment, wealth and spur economic growth.

“We recognise the great significance the agriculture sector plays within this economy and that is why 20 per cent of our lending is in agriculture,” said Munatsi.

He said during the opening of the bank’s branch in Arusha that the financial institution will specifically extend more support to the Kilimo Kwanza initiative.

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Munatsi said the bank’s expansion into Arusha aligns with its strategy to meet the growing demands of customers seeking financial services. The opening of the branch was held alongside the launch of Visa pre-paid cards.

The cards allow employees who have no accounts to be paid through the system, he explained, adding that the benefits of the system for individuals, SMEs and corporate companies were numerous.

The managing director of BancABC Tanzania, Boniface Nyoni, said competition in the financial services industry in Tanzania was tough and bound to get even tougher because new players were coming into the market every year.

However, he commended the government for reducing barriers to entry into the market, saying the country has huge potential. “We are determined to fight for our space in these circumstances, with the sole aim of delivering real value to the customer,” he noted.

The increased competition has made BancABC more innovative leading to fresher and differentiated products and outlets. Recently, the bank introduced Sunday operations for some of its branches in Dar es Salaam.

BancABC is a brand name of ABC Holdings Limited, a Botswana-registered company with a primary listing on the Botswana Stock Exchange and a secondary listing on the Zimbabwe Stock Exchange.

The Group has operations in Botswana, Mozambique, Tanzania, Zambia, Zimbabwe and an office in South Africa and has been in business in the last ten years.