Stable Economy and Targeted Reforms Fuel Tanzania’s Expansion

*NCBA Launches ‘NCBA Now’ App Amid Tanzania’s Economic Rise, Boosting Digital Banking Across Africa

Dar es Salaam, April 26, 2024

Tanzania is charting a course toward economic prosperity, bolstered by a foundation of stability and comprehensive sector-wide reforms under the guidance of President Dr. Samia Suluhu Hassan. This positive trajectory was underscored by Mr Nehemia Mchechu, Treasury Registrar, at the Dar es Salaam launch of NCBA Bank Tanzania’s new omnichannel banking application, “NCBA Now,” on April 26, 2024.

Expressing optimism about Tanzania’s economic aspirations and future, Mr. John Gachora, Group Managing Director of NCBA, announced at the event that the bank serves an extensive customer base of over 65 million across Africa. This launch is a key component of NCBA’s strategic initiative to incorporate advanced technological features that cater to its rapidly expanding customer base. The introduction of the NCBA Now app is expected to enhance the bank’s capacity to issue digital loans significantly.

Mr. Mchechu articulated that prosperity is built on four main pillars: requisition, Resilience, Reforms, and Regulations. These initiatives aim to balance and transform the economy across various sectors and yield tangible benefits. “We are witnessing a favorable environment for business growth, underpinned by our economic stability,” Mr. Mchechu noted, emphasizing the government’s supportive role towards private sector advancements.

At the heart of Tanzania’s economic success story is its robust banking sector, which has seen substantial improvements in recent years. Banks have played a crucial role in reducing non-performing loans and effectively supporting the economy. Mr. Mchechu commended NCBA for its foundational strengths, including customer resilience, dedicated staff, and continuous innovation, contributing to its recent successes despite previous financial challenges.

During his speech, Mr. Mchechu pointed out that the banking sector’s stability is vital, as it directly impacts the overall economy and business environment. However, he also highlighted a need for greater innovation, particularly in technological advancements within the sector.

Reflecting on the turnaround in NCBA’s performance, Mr Mchechu attributed their success to the robust economic foundations laid by the country’s leadership and the proactive policies aimed at enhancing investor attraction and improving performance across the board.

“NCBA has shown remarkable recovery, notably since last year, after navigating through a tough period marked by losses over the past three years,” he explained. “Their success and that of other businesses in Tanzania can largely be credited to the strong economic strategies implemented by our president since her inauguration.”

According to Mr. John Gachora, Group Managing Director of NCBA, the new platform offers a comprehensive range of services including real-time account monitoring, card management, customizable service requests and alerts, as well as options for fund transfers, bill payments, and instant mobile wallet transactions. These features ensure a seamless banking experience across both mobile and web interfaces.

During the event, Mr. Gachora highlighted NCBA’s significant achievements: “Our remarkable journey includes disbursing KSH 935 billion in digital loans and achieving a 56% increase in after-tax profits, reaching KSH 21.5 billion in 2023.” He added, “These milestones underscore our leadership in the financial services industry and reflect the significant strides made by our regional subsidiaries in Tanzania, Uganda, and Rwanda towards sustainable growth.”

In 2023, NCBA Tanzania showcased a robust financial performance, with a profit after tax of TZS 20,164 billion, marking a 157% growth rate. The bank also recorded a 91.5% increase in customer deposits to TZS 262,582 million and a 14.5% growth in total assets to TZS 515,503 million. The Retail Digital Business unit of NCBA Bank Tanzania was particularly impactful, disbursing TZS 100 billion worth of loans and generating TZS 25 billion in revenues through its M-Pawa digital lending service.

NCBA Now is available for download from the App Store and Google Play Store, allowing customers to manage their bank accounts effortlessly from their mobile devices. The bank plans to roll out the revamped app in other regional markets, including Uganda, Rwanda, and Ivory Coast, to enhance further digital banking penetration across East Africa and beyond.