BancABC ANNOUNCES A REDUCTION IN LENDING RATES

BancABC Tanzania Limited Managing Director, Dana Botha (left) addresses the media in Dar es Salaam yesterday after the Bank announced a reduction in lending rates for term loans, overdrafts and mortgages. He is flanked by the Banks Head of Retail and Commercial Banking, Joyce Malai.    

BancABC Head of Treasury, Barton Mwasamengo (left) addresses the media in Dar es Salaam yesterday after the Bank announced a reduction in lending rates for term loans, overdrafts and mortgages. He is flanked by the Banks Managing Director, Dana Botha (centre) and Head of Retail and Commercial Banking, Joyce Malai (right).

BancABC Managing Director, Dana Botha (right), Head of Retail and Commercial Banking, Joyce Malai (centre) and Head of Treasury, Barton Mwasamengo (left) hold a placard after the Bank’s announcement of a reduction in lending rates for term loans, overdrafts and mortgages.

BancABC, which is part of Atlas Mara a London listed entity, has made yet another step ahead of the market and is announcing a reduction in lending rates aimed at easing the repayment burden and increasing borrowing to existing and new customers with effect from April 1, 2018.

Speaking in Dar es Salaam, the BancABC Managing Director, Mr. Dana Botha said they will be reducing their lending rates for term loans, over draft and mortgages for customers of a good standing.

“Last year, most banks experienced liquidity challenges which ultimately affected their lending capabilities. For a couple of months now the Government through Bank of Tanzania (BOT) has stepped up and has been advocating the reduction of lending rates from Commercial Banks through reducing regulatory requirements such as Statutory Minimum Reverse, Discount rates, Treasury Bills and lending to Banks at a lower rates. This has enabled lending to be more affordable for Individuals, SME’s and Corporates borrow consequently enhance / boost their businesses with the aim of improving the business economy and we are glad to be amongst the first Banks to announce this move,” he said.

He said their customers will now enjoy a new or renewed loans at much more affordable payback rate. “We believe more customers will now come knocking at BancABC because of this new move,” He said and added that lower rates will attract the majority of Tanzanians individuals and businesses alike – in urban and rural areas to have an opportunity to improve the quality of life or increase business. This will ultimately stimulate economic growth.

“High lending rates have been a challenge to the majority of Tanzanians especially the middle class but we now believe even those who could not borrow can use this opportunity to boost their businesses and improve lives in general,” He said.

According to Dana the new measures by the government will stimulate growth by encouraging banks to lend rather than invest in Treasury and Government bonds and this will attract our customers in borrowing and increase quality of life and business growth.

The banks’ Head of Retail and Commercial Banking, Joyce Malai said that BancABC serves over 60,000 retail customers with different products, with this new move it gives us an opportunity to cross sell and attract even more products per customer with is a key focus on more affordable mortgage rates which has been a cry for many middle class Tanzanians. We also take this advantage to support our SME and Corporate customers with affordable loans and Overdrafts from one of the best financial institution in the country.

“Today’s announcement of low lending rates is a key milestone to BancABC as we align our vision to the premier financial service institution in Sub- Saharan Africa and obtain top 5 market position in countries that we operate, said Malai.

BancABC is leading this challenge put to the industry by the BOT to reduce rates.

ABOUT ABC HOLDINGS

ABC Holdings Limited is the parent company of a number of sub-Saharan Africa banks operating under the BancABC brand, which offers a diverse range of financial services including personal, business and corporate banking, as well as asset management, stockbroking, and treasury services.

ABOUT ATLAS MARA

In 2014, Atlas Mara acquired a significant majority stake in ABC Holdings. Guided by its core values of professionalism, people, innovation, passion and integrity, BancABC is pursuing its vision to be the preferred banking partner in Africa by offering world class financial solutions – to the benefit of all its stakeholders.

Atlas Mara was listed on the London Stock Exchange in December 2013. Atlas Mara's vision is to create sub-Saharan Africa's premier financial services institution through a combination of its experience, expertise and access to capital, liquidity and funding. Its goals are to combine the best of global institutional knowledge with extensive local insights and to support economic growth and financial inclusion in the countries in which the Company operates.