Zanzibar – In a significant boost to Zanzibar’s fast-growing construction sector, NMB Bank Plc has unveiled a comprehensive suite of enhanced banking solutions tailored specifically for contractors. The initiative is aimed at empowering local firms to undertake larger, more complex projects and play a stronger role in the island’s economic development.
The landmark announcement was made during a high-profile event held at Hotel Verde, Zanzibar, which brought together senior government officials, industry leaders, and contractors from across the archipelago.
Government Endorsement Underscores Strategic Importance
The event was graced by the Minister of Works and Transport, Hon. Dr. Khalid Salum Mohamed, who served as the Guest of Honor, underscoring the government’s strong commitment to building a robust, self-reliant construction industry. Leading the NMB delegation was the Chief of Retail Banking, Mr. Filbert Mponzi, who outlined the bank’s transformative support measures.
Addressing the gathering, Minister Mohamed commended NMB for introducing what he described as a timely and impactful initiative critical to Zanzibar’s development agenda.
“This is not merely a gesture of goodwill; it is a strategic investment in the very fabric of our national progress,” said Minister Mohamed, emphasizing that the construction sector remains a fundamental pillar of national development.
He further urged local contractors to seize the opportunities presented by NMB’s enhanced services, noting that improved access to financial guarantees would enable them to compete more effectively for large-scale projects traditionally dominated by foreign firms.
“These guarantees will empower you to compete for larger tenders which, for too long, have been dominated by foreign entities,” the Minister appealed, echoing President Dr. Hussein Mwinyi’s calls to strengthen local capacity and participation in strategic national projects.
NMB’s Commitment to Empowering Local Contractors
In his welcoming remarks, Mr. Filbert Mponzi reaffirmed NMB’s dedication to supporting the growth and competitiveness of local contractors. He noted that the new enhancements were informed by extensive research into the financial constraints that often limit contractors’ ability to secure major tenders.
“We recognized that access to financing and guarantees is often the primary hurdle preventing talented local contractors from winning significant projects. Today, we are changing that narrative,” Mponzi stated.
Significantly Enhanced Financial Guarantees
At the core of NMB’s new offering is a substantial increase in financial guarantee limits:
- Bid Bond Guarantees have been increased from TZS 2.5 billion to TZS 25 billion, available without collateral.
- Project Guarantees, including Performance Guarantees and Advance Payment Guarantees, have been raised to TZS 3 billion per project without collateral for Zanzibar Government institutions.
These guarantees apply to key entities such as the Zanzibar Investment Promotion Authority (ZIPA), Zanzibar Social Security Fund (ZSSF), Zanzibar Housing Corporation (ZHC), Zanzibar Ports Corporation (ZPC), Zanzibar Airports Authority (ZAA), and various government ministries. This represents a significant increase from the previous limit of TZS 1.5 billion.
For strategic infrastructure projects—such as roads, buildings, and specialized suppliers under the Blue Economy Ministry—NMB has indicated its readiness to offer even higher limits exceeding TZS 3 billion, still without collateral.
Faster Approvals Through Decentralized Decision-Making
Another major improvement announced was the decentralization of approval processes. To enhance efficiency and reduce turnaround time:
- NMB Branch Managers are now authorized to approve Bid Bonds, Performance Guarantees, and Advance Payment Guarantees of up to TZS 500 million without collateral.
- Applications within this threshold will be processed within 24–36 hours, provided all documentation is complete.
- Requests exceeding TZS 500 million will be reviewed at NMB headquarters, with decisions issued within 10 working days.
This strategic move is expected to significantly improve service delivery and responsiveness to contractors’ needs.
Industry Applause for the Initiative
Welcoming the development, Eng. Khamis Ali Omary, a Board Member of the Zanzibar Contractors Registration Board (ZCRB), praised NMB’s initiative as a milestone for local economic empowerment.
“This initiative by NMB Bank is a testament to their commitment to empowering our local economy. Our contractors, skilled workforce, and the wider community will all benefit immensely, strengthening Zanzibar’s economic self-reliance and driving us toward a more prosperous future,” he said.
A Transformative Step for Zanzibar’s Construction Sector
The enhanced solutions introduced by NMB Bank are set to redefine the operating landscape for contractors in Zanzibar. By easing access to financing and guarantees, the bank is positioning local firms to take on a more central and impactful role in the island’s development journey—unlocking new opportunities, strengthening local capacity, and accelerating sustainable economic growth.
No comments:
Post a Comment