Efforts to establish the National Cooperative Bank (NCB) are gaining momentum, with approximately 85.5% of its shares already sold, signaling a promising start for the initiative. The bank aims to raise a total of 20 billion Tanzanian Shillings (TZS) before its anticipated inauguration in less than two months, spearheaded by the KCBL bank.
According to Mr. Godfrey Ng’urah, the General Manager of KCBL, the sale of shares has yielded 17.1 billion TZS, with cooperatives contributing 8.7 billion TZS, institutions 1.9 billion TZS, and individuals 6.5 billion TZS.
"We are confident in reaching our target as numerous cooperatives have expressed interest in purchasing shares, and CRDB intends to further invest in the bank," stated Mr. Ng’urah in an interview with the 'Daily News' on Sunday.
NCB aims to transform the cooperative banking sector by providing comprehensive financial services and support to cooperative unions and other economic entities across the country, fostering growth and sustainable development. KCBL has taken the lead in establishing NCB, having merged with Tandahimba Community Bank (TACOBA) in Mtwara last year, a crucial step toward the formation of the cooperative bank.
CRDB Bank holds a 20% stake in the envisioned cooperative bank through its capital investment, which helped rescue KCBL and TACOBA with an injection of 7.0 billion TZS, along with additional funds.
"The investment in KCBL and TACOBA was not in the form of a loan but as part of ownership. These shares, along with additional funds, will contribute to the acquisition of a 20% stake in the national cooperative bank," explained Dr. Ally Laay, the Chairman of the CRDB Group, during a recent meeting with the Parliamentary Standing Committee in Moshi, Kilimanjaro.
The establishment of the National Cooperative Bank holds significant promise for the cooperative sector, promising increased access to financial services and driving economic empowerment across Tanzania.