NMB Bank, one of Tanzania's leading financial institutions, has unveiled a revolutionary banking package, NMB Kwetu, specially designed for Tanzanians living and working abroad. The initiative, launched over the weekend, aims to enhance diaspora remittances to the country and foster increased foreign exchange inflows.
NMB Kwetu introduces a suite of tailored financial services for diaspora customers, allowing them to seamlessly open digital accounts, conduct transactions, and invest back home through the bank. This innovative solution aligns with the government's efforts to ensure accessible financial services for Tanzanians globally.
At the launch event, Mr. Stephen Mbundi, Permanent Secretary in the Ministry of Foreign Affairs and East African Cooperation, praised the initiative's potential to facilitate the flow of remittances and bolster foreign exchange inflows. He emphasized the substantial contribution of the diaspora, citing a total of 369.3 million US dollars in remittances for 2021. In 2022, this figure surged to 1.1 billion US dollars, accompanied by substantial investments in local real estate projects and securities.
Ambassador Mbundi expressed confidence in the diaspora's engagement with financial opportunities, including the recently introduced NMB Jamii Bond. He highlighted the historic significance of NMB Kwetu, which not only addresses financial needs but also provides life insurance coverage. The insurance policy, valued at up to 29 million Tanzanian shillings and underwritten by Sanlam Life Insurance, includes provisions for repatriation in cases of death or permanent disability.
Ruth Zaipuna, Chief Executive Officer of NMB Bank, underscored the digital onboarding aspect of NMB Kwetu, emphasizing its efficient account opening process for diaspora customers. She highlighted the absence of monthly service fees for these accounts. Ms. Zaipuna also detailed the remittance component of the package, mentioning the complementary Worldwide Pesa service. In operation since June last year, this service, facilitated through collaborations with Thunes and Terrapay, has handled over 35,000 transactions valued at 52 billion Tanzanian shillings.
Furthermore, NMB Kwetu extends investment opportunities to Tanzanians abroad, offering services such as mortgage loans and various short and long-term deposit products. Ms. Zaipuna reaffirmed the bank's commitment to empowering the diaspora community and enhancing their financial connectivity with Tanzania.
NMB Kwetu represents a significant step toward strengthening financial inclusivity for Tanzanians abroad, encouraging increased remittances, and promoting investments that contribute to the nation's economic growth.