NEW PAN-AFRICAN PRIVATE EQUITY FUND LAUNCHED IN TANZANIA

Mkoba Private Equity Fund was launched in Dar Es Salaam on Tuesday 29th April 2014 during the conference on private equity in Tanzania organized by the UONGOZI Institute.

With a target fund size of USD 300 million, Mkoba is the first private equity fund of its size in Tanzania.

The fund targets fast growing countries undergoing liberalization and post-conflict countries rebuilding their economies including: Ivory Coast, DRC, Ethiopia, Liberia, Mozambique, Rwanda, Tanzania, Sierra Leone and South Africa.

The fund explicitly targets equity investment ranging from 1 to 15 million mainly through providing growth capital for high-growth small and medium sized companies.

The fund, headquartered in Dar Es Salaam, will bring capital, expertise and interest from protests sponsored by local entrepreneurs in Tanzania, with the aim of filling a gap in the current range of financing available to SMEs in the regions.

DR. KIMEI SHORTLISTED FOR ANOTHER AFRICAN BANKER OF THE YEAR AWARD

The CRDB Bank Managing Director Dr Charles Kimei has been shortlisted again for the prestigious “African Banker of Year Award” for the year 2014.

Dr Kimei, a seasoned banker with more than 30 years experience is the only Tanzanian to have been shortlisted for that accolade for two successive years.

African Banker of the Year Award goes to an influential and inspirational leader in the African banking sector who through their leadership and vision, have overseen strong financial performance of their organisations and successfully guided them to new heights in the industry.

According to a statement from the bank, to get the overall winner, several aspects are considered, including but not limited to formation of new best business practices, expansion into new markets, innovation in terms of new services and adaption of new technologies for customer convenience and protection mechanisms.

IFC AND CRDB COMMIT TO SUPPORT SME AND AGRIBUSINESS SECTORS IN TANZANIA

Washington, DC, April 11, 2014 - The International Finance Corporation (IFC), a member of the World Bank Group, today signed a landmark $75 million agreement with CRDB Bank that will help provide much needed support to small businesses, particularly those owned by women, as well as to farmers and agribusiness in Tanzania.

In Tanzania, there is a significant financing gap for SMEs, and women-owned businesses are particularly disadvantaged with only 15% reporting having access to a bank loan. Access to finance is critical to helping them to grow their businesses and contribute to economic development. IFC and CRDB Bank will partner to focus on underserved SME and retail market segments as well as agribusiness producers and exporters.

Jean Philippe Prosper, IFC Vice President for Sub-Saharan Africa, said: "IFC is committed to partner with CRDB Bank to reach out to underserved communities in Tanzania. This is the beginning of IFC's collaboration with CRDB Bank and we hope to work more closely to support economic development and promote job creation in the country." 
"Working with IFC, we intend to strengthen our reach to SMEs and further promote agri commodity export. As a market leader in Tanzania, we have a mandate to support these market segments and are grateful to launch the collaboration with IFC," said Dr. Charles Stephen Kimei, Managing Director of CRDB Bank Group. 

The investment will promote financing for women-owned businesses, as well for farmers, capitalizing on CRDB Bank's position as a leader in financial inclusion in Tanzania. IFC also plans to provide advisory services in the field of trade and warehouse financing to strengthen CRDB's operations. 
The signing ceremony took place in Washington DC during the World Bank-IMF Spring Meeting and was observed by the Finance Minister Hon. Saada Mkuya Salum, Tanzanian Ambassador to the USA Liberata Mulamula, and the Bank of Tanzania Governor Prof. Benno Ndulu. 

The comprehensive investment package consists of a $40 million loan targeting SMEs, particularly those owned by women, including $6 million through IFC's Global SME Finance Facility; a $10 million trade line through IFC's Global Trade Finance Program and $25 million through IFC's Global Warehouse Finance Program to support the agricultural commodity business, including $10 million from the Global Agriculture and Food Security Program's (GAFSP) private sector window.

IFC AND CRDB BANK SIGN LANDMARK $75 MILLION LOAN AGREEMENT, COMMIT TO SUPPORT SME AND AGRIBUSINESS SECTORS IN TANZANIA

The International Finance Corporation (IFC), a member of the World Bank Group, on Friday April 11, 2014 signed a landmark $75 million loan agreement with the CRDB Bank that will help provide much needed support to small businesses, particularly those owned by women, as well as to farmers and agribusiness in Tanzania.  In Tanzania, there is a significant financing gap for SMEs, and women-owned businesses are particularly disadvantaged with only 15% reporting having access to a bank loan. 

 Access to finance is critical to helping them to grow their businesses and contribute to economic development. IFC and CRDB Bank will partner to focus on undeserved SME and retail market segments, as well as agribusiness producers and exporters.
 Jean Philippe Prosper, IFC Vice President for Sub-Saharan Africa, said: “IFC is committed to partner with CRDB Bank to reach out to undeserved communities in Tanzania. This is the beginning of IFC’s collaboration with CRDB Bank and we hope to work more closely to support economic development and promote job creation in the country.” 

 “Working with IFC, we intend to strengthen our reach to SMEs and further promote agri commodity export. As a market leader in Tanzania, we have a mandate to support these market segments and are grateful to launch the collaboration with IFC,” said Dr. Charles Stephen Kimei, Managing Director of CRDB Bank Group.
 The investment will promote financing for women-owned businesses, as well for farmers, capitalizing on CRDB Bank’s position as a leader in financial inclusion in Tanzania. IFC also plans to provide advisory services in the field of trade and warehouse financing to strengthen CRDB’s operations. 

 The signing ceremony took place in Washington DC during the World Bank-IMF Spring Meeting and was observed by the Finance Minister Hon. Saada Mkuya Salum, and other top officials from Tanzania's finance sector.

 The comprehensive investment package consists of a $40 million loan targeting SMEs, particularly those owned by women, including $6 million through IFC’s Global SME Finance Facility; a $10 million trade line through IFC’s Global Trade Finance Program and $25 million through IFC’s Global Warehouse Finance Program to support the agricultural commodity business, including $10 million from the Global Agriculture and Food Security Program’s (GAFSP) private sector window.

TANZANIA MORTGAGE MARKET UPDATE AS AT 31 DECEMBER 2013

Highlights

• The mortgage market continued to grow steadily, recording an annual growth rate of 46%.
• 19 lenders are now offering mortgage products with more due to enter the market.
• Outstanding mortgage debt stood at TZS 156 billion.
• Average mortgage debt size was TZS 62 million equivalent to around USD 38,000.
• The ratio of outstanding mortgage debt to Gross Domestic Product (GDP) stood at 0.36%.
• Mortgage debt advanced by the top 3 lenders accounted for 67% of the total outstanding mortgage debt.
• High interest rates and lack of affordable housing remain the major constraints on market growth.
• Mortgage debt advanced by Tanzania Mortgage Refinance Company Limited (TMRC) to mortgage lenders accounted for 11% of the market's outstanding mortgage debt. 

Click here for the full report (Source: Bank of Tanzania)

NIKO INSURANCE TANZANIA LAUNCHES INNOVATIVE HOME INSURANCE POLICY

The new insurance policy named Homesure is a personal insurance policy that targets growing income earners in Tanzania, who are investing in their homes.

Unveiling Homesure, in Dar es Salaam recently, Niko Insurance Tanzania Chief Executive Officer, Mr Manasseh Kawoloka explained ”It is believed that the most valuable physical asset that an individual will own is their home and its contents seconded by a motor vehicle.

Those who live in rented accommodation possess furniture and other expensive valuables which can be stolen or damaged by fire, windstorm, man-made risk or acts of God perils.

There is, therefore, great need for proper insurance cover for such assets.

Today’s homes have evolved and require more extensive insurance cover than those offered by traditional policies.

The answer to this jig-saw puzzle is found in Homesure.
Kawoloka admitted that there are numerous insurance policies on offer in the market and competition is high.

NBC LAUNCHES FREE CREDIT LIFE INSURANCE FOR PERSONAL LOANS

The National Bank of Commerce (NBC), one of the largest retail banks in Tanzania, has launched its Free Credit Life Assurance (Loan Insurance) product.

Speaking at the launch of the product which was held at the NBC Head Office in Dar es Salaam, the bank’s Head of Insurance, Ms. Kemibaro Omuteku said, “This is another key milestone for our bank, as our brand purpose is to help people achieve their ambitions – in the right way, the product is for all the Individual borrowers for Term loans, Vehicle loans, Personal loans, Group Scheme loans, and Overdrafts (Sole Proprietors). This benefit excludes Registered Companies. Free cover limit will be TZS 350 million for Personal loans, Term loans and Overdrafts”.

This insurance cover pays the outstanding balance of the personal loan in the event of death or total permanent disability of the borrower provided that loan repayments are up to date as contracted with NBC Limited.

It is a free product because NBC Limited will pay the Borrower’s Insurance premiums (charges).