NBC Bank has introduced the ‘Mfugaji Account,’ a new financial service tailored specifically for the livestock sector. This groundbreaking account, the first of its kind by a commercial bank in Tanzania, aims to support farmers, livestock fattening operators, traders, transporters, and others involved in the vital economic sector. #
The launch event took place at the Pugu Livestock Auction Market in Ilala district, Dar es Salaam, over the weekend.Ilala District Commissioner (DC), Edward Mpogolo, led the event, joined by senior government officials and key stakeholders in the livestock business, including market leaders and traders. The introduction of the Mfugaji Account is expected to significantly bolster the growth of the livestock industry by providing simplified and accessible financial services.
DC Mpogolo praised NBC Bank for this initiative, highlighting the longstanding need for specialized banking services in the livestock sector. He noted that many stakeholders have traditionally relied on informal financial services, which can jeopardize their safety and financial stability. "For instance, the Pugu auction sees an average daily cash flow of 1 billion TZS, with traders carrying large sums of cash. The ‘Mfugaji Account’ will address this risk by offering secure financial transactions at auction locations," Mpogolo said.
Additionally, Mpogolo urged the bank to further support livestock farmers through financial education, modern farming techniques, and marketing strategies, enhancing their productivity and investments.
Elibariki Masuke, NBC Bank’s Director of Retail Banking, outlined the benefits of the Mfugaji Account. The service caters to individual livestock farmers and groups, offering livestock-specific loans, no monthly account maintenance fees, free account statements, low-cost cash withdrawals, mobile banking services (NBC Kiganjani), and a 2% monthly savings interest. "Groups and associations will also enjoy the flexibility of depositing and withdrawing money anytime, with low-cost checkbooks. Opening an account is completely free at our branches nationwide," Masuke explained.
Raymond Urassa, NBC Bank’s Head of Small and Medium Enterprises (SMEs), Product, and Agriculture, emphasized the inclusive nature of the service. He stated that it covers all livestock farmers, including those dealing with cattle and poultry. This initiative follows the bank’s launch of specialized services for farmers, such as health insurance. "We recently introduced the Farmers’ Insurance service nationwide, and now it's time to extend these benefits to livestock farmers," Urassa added.
Noel Byamungu, Head of Pugu Livestock Auction, and Iddy Maziku, Chairman of Livestock Traders at the auction, welcomed the Mfugaji Account. They highlighted that it addresses the challenge of carrying large amounts of cash due to the lack of tailored financial services near auction sites. "This product will greatly benefit us in the livestock sector. It ensures our safety and the security of our funds. We are grateful to NBC Bank for this initiative," Maziku expressed.