NMB LAUNCHES SPECIAL BANKING PACKAGE FOR DISAPORA

NMB Bank has launched a special banking package for Tanzanians living and working abroad, which the government says will boost diaspora remittances to the country.

The lender officially debuted the "NMB Kwetu" solution recently to offer tailor-made financial services to diaspora customers by allowing them to digitally open accounts, transact and invest back home through the bank.

Speaking at the event to grace the development, the Permanent Secretary in the Ministry of Foreign Affairs and East African Cooperation, Mr. Stephen Mbundi, said the NMB diaspora banking service will both facilitate flow of remittances and boost the foreign exchange inflows.

“NMB Kwetu is a vital service that complements efforts of the government to ensure readily availability of financial services to Tanzanians wherever they are, including those living in the diaspora,” Ambassador Mbundi noted.

According to him, the Sixth Phase Government recognises the role and contribution of the diaspora in national building through expertise and the funds they send back home, which he said totaled 369.3 million US dollars in 2021.

“That’s a lot of money at the current exchange rate,” he noted, adding that the inflows have been increasing yearly to top 1.1 billion US dollars in 2022 when Tanzanians living abroad also invested 4.4bn/- in real estate projects in the country.

Expressing optimism of the diaspora going for the recently floated NMB Jamii Bond, Ambassador Mbundi said they have also been active in the local securities market where in 2022 they invested 2.3bn/- in schemes run by the Unit Trust of Tanzania.

He said apart from being historic, the NMB Kwetu service development has also come at the right time and offers the bank the opportunity to benefit from international transactions.

He added that the life insurance cover provided as part of the package solves the challenges many members of the diaspora encountered in cases of death and permanent disabilities.

NMB Bank’s Chief Executive Officer, Ruth Zaipuna said apart from death and disability benefits, the up to 29m/- insurance policy underwritten by Sanlam Life Insurance also caters for body repatriation at no additional cost.

She said the other major merit of NMB Kwetu is its digital on-boarding aspect.

“This service is a digital documents collection portal offering the best turnaround time in account opening for our diaspora customers,” Ms. Zaipuna said, noting that the accounts will also not be charged monthly service fees.

She added that the remittances part of the package will be complemented by the Worldwide Pesa service, which NMB silently launched in June last year to help facilitate money transfer from across the globe.

To date, the service operated in conjunction with Thunes and Terrapay has handled over 35,000 transactions worth 52bn/-, Ms. Zaipuna explained.

“Offering investment opportunities to fellow Tanzanians abroad is also our priority therefore through NMB Kwetu, diaspora customers will be offered services such as mortgage loans as well as investing in short and long-term deposit products,” she pointed out.