By Correspondent Ernest C. Ambali
The Tanzania Investment Bank (TIB) is now assured of nearing to its
envisioned zenith—“to be the premier development bank that promotes
economic growth by offering complete financing solutions to clients”.
The assurance follows the recent one billion/- in the National
Assembly meeting in Dodoma by the Deputy Minister for Finance and
Economic Affairs, Mr Jeremiah Sumari. The grant, he said, is to
finance the agriculture sector.
Although more spade work is called for to reach its zenith, but the
fact that the government has recently given the bank the one billion/-
to empower it as it drives towards development of the agricultural
sector, it means the move is guaranteed.
In fact the government had earlier decided to recapitalize the
35-year old bank up to 50 billion/- So far the paid up capital has
increased from 7.6 billion/- to 23.7 billion/-
“The government plans to inject a further capital of 21 billion/-
before end of 2009”, says the bank’s document containing the Corporate
Plan for the period 2009—2018 and the 2009 Budget.
The one Billion grant is portioned from the recouped External Payment
Arrears (EPA) Fund in the safe custody of the Bank of Tanzania (BOT)
President Jakaya Kikwete recently promised to crop part of the
recouped money and give it to the TIB, for financing the agricultural
sector.
Announcing the grant in Parliament on 8th JULY, 2009, Deputy Minister
Sumari said: “until now we have injected into the TIB one billion/- We
promised to give the bank three billion/- and we will continue seeking
more funds to empower it financially”, he said.
Deputy Minister Sumari was reacting to a question raised by Member of
Parliament for Busega, Raphael Chegani (CCM) who wanted to know
whether or not the government had injected into the bank the
promised 15 billion/- from the EPA fund.
Deputy Minister Sumari said that the promised three billion/- would
not be enough for TIB’s agricultural window now opened more widely by
the bank to extend more loans to farmers.
“As of now TIB needs 150 billion/- to enable it perform its role more
effectively and efficiently than it does at present.
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“TIB needs 150 billion/- to enable it compete with other Commercial
banks extending loans to farmers and other customers.
“The funds being injected in the TIB is in teed to boost its
financial power to provide loans to formers and other people, while
the government is planning establishment of the Tanzania Agricultural
Development Bank”, Deputy Minister Agricultural Development Bank”,
Deputy Minister Sumari said in Parliament.
Although the TIB has not been declared the Tanzania Agricultural
Development Bank (TADB) it is well positioned for promoting economic
growth through the agricultural sector.
In fact the bank has been predominantly extending loans to small,
medium enterprises, (SMEs) for many years from its own account and
from funds managed on behalf of other parties on agency basis—off
balance sheet—since it was formed in 1970.
Now that this bank has been transformed into a National Development
Finance Institute by the government, financing of SMEs will receive
renewed impetus.
In Tanzania, there is one name which can be counted on for superior
development banking products and services. It is the Tanzania
Investment Bank Limited.
It was not by waving a magic wand and pronouncing a magic word,
“abra—cadabra” that lifted up the bank to the superior level of
development banking.
It was the proactive team of the Board of Directors, management and
other staff, which performed the miracle, throughout the tortuous 20
years from 1980 as led by the bank’s first positive Mission Statement
which said:
“To become the leader the in development financing whilst providing
specialized banking services, and thus catalyse the economic
development of Tanzania”.
Armed with this mission statement, the seemingly diminutive bank,
compared to other commercial banks in terms of buildings, it was able
to chisel through the turbulent sea of economic depression for 20
years.
Later government reformed the bank’s financial system to, among other
things, increase competition, establish capital markets. This was
undertaken during the period of the first generation of financial
sector
reforms, focused on reform of the country’s commercial banking and insurance.
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This Vision is dovetailed with the bank’s mission—“to provide
development financing and related services through efficient
mobilization and deployment of resources in pursuit of
well-diversified and competitive national economy”.
It is not surprising therefore, to see that the positive Strategic
Vision is coupled with the operative phrase, “to be the PREMIER
DEVELOPMENT BANK”.
This phrase might be interpreted by the bigots as “self-
aggrandizement” as an institution, yet the truism is that it describes
the bank’s positive performance “through efficient mobilization and
deployment of resources”.
And the TIB, in one of its documents qualifies this phrase by saying:
“TIB is well aware of the government’s development agenda and the
funding constraints in the Tanzania’s economy”.
And, again, adds; “therefore, our corporate objectives are: to make
available short term, medium and long – term finance for economic
development.
Linked to this is “to provide technical assistance and advice in
order to promote economic development”.
To crown it all is “to create public awareness on our products and services”.
Indeed history of this “giant commercial bank in-the-making tells it
all, since it started functioning as a Development Finance Institution
in the past.
“The management staffs understand the operations of development
banking. Therefore it will continue to adhere to its core values by
doing five things.
The first is operating with prudence and in compliance with statutory
and regulatory requirements. Second is maximizing development impact
by bringing about economic and social advancement.
Third, inspiring pride and confidence among customers, staff and the
general public. Fourth, is delivering high quality and distinguished
products and services.
Fifth is serving customers cordially with speed and efficiency. The
bank, in its statement, concludes by saying and seemingly proudly so:
“We are truly by Tanzanians for Tanzania”.