President Samia Suluhu Hassan has bestowed a prestigious award upon NMB Bank, acknowledging the financial institution's exceptional performance and noteworthy contribution to the national treasury. The honor was conferred upon Ruth Zaipuna, the Chief Executive Officer of NMB Bank, during a significant gathering of Board Chairpersons and Executives from Public Enterprises and Government Agencies in Arusha.
The accolade stems from NMB Bank's substantial dividend payment of 45.5 billion Tanzanian Shillings to the government. This sum reflects the financial institution's contributions derived from realized profits in the previous fiscal year. President Samia emphasized the significance of fostering robust performance across public institutions and government agencies to bolster profitability and reduce reliance on state support.
Notably, the government holds a 31.8% stake in NMB Bank, solidifying its status as the second-largest financial institution in the nation. Additionally, the government has share ownership in other prominent banks, including CRDB, Tanzania Commercial Bank (TCB), National Bank of Commerce (NBC), and Azania Bank.The success story of NMB Bank stands as a testament to the efficacy of financial sector privatization, a key initiative pioneered during the tenure of the third phase government under the late President Benjamin Mkapa.
President Samia highlighted that the government's investment of over 73 trillion Tanzanian Shillings in public enterprises and state-run institutions aims to yield substantial returns in profits.Nehemia Mchechu, the Treasury Registrar, underscored the ongoing reforms within public institutions. To date, 28 organizations have transitioned from government subsidies to profitability, reflecting a positive trajectory of reform efforts. Mchechu also hinted at the possibility of recognizing top-performing institutions while sparing non-performers from public scrutiny, given the progressive reforms underway.
Arusha witnessed a strategic workshop attended by more than 600 participants representing nearly 250 public enterprises across the country. The gathering's objective is to enhance the performance of parastatal entities within Tanzania. Notable entities, including Twiga Minerals Corporation, State Mining Company (STAMICO), National Insurance Company (NIC), Tanzania Ports Authority, and Tanzania Communications Regulatory Authority (TCRA), were also acknowledged during the event.
To conclude the event on a high note, Prime Minister Kassim Majaliwa honored President Samia Suluhu with a special award. This recognition celebrates President Samia's pivotal contributions to the ongoing reforms within the public sector, underscoring her commitment to driving positive change.