NMB Bank, one of Tanzania's leading financial institutions, has officially entered into a strategic partnership with Oryx Gas Tanzania to advance the utilization of Liquefied Petroleum Gas (LPG) in the country. This milestone was marked by the signing of a Memorandum of Understanding (MoU) between the two entities.
Mr. Filbert Mponzi, the Chief of Retail Banking at NMB, made the announcement highlighting the significance of the collaboration with Oryx Gas in line with the government's efforts to ensure access to modern, clean, and safe energy sources.
"Our collaboration with Oryx Gas will result in increased availability of LPG at discounted rates for our customers nationwide. As a bank, environmental sustainability is a top priority for us, and we believe that this initiative will serve as a catalyst for enabling individuals to transition quickly to cleaner energy sources," said Mr. Mponzi. This partnership is expected to have a positive impact on Tanzanians by reducing their exposure to unhealthy wood smoke and alleviating pressure on the depletion of forest resources, contributing to a greener and healthier environment.
The MoU aligns with Sustainable Development Goal 7 (SDG 7), which aims for universal access to modern energy services for all by the year 2030. Under this agreement, NMB Bank customers across the country will be able to purchase complete LPG starter packs at discounted prices using the bank's digital payment solutions. Additionally, the partnership with Oryx Gas intends to bolster the entire LPG value chain by providing affordable loans to LPG wholesalers, retailers, and distributors throughout Tanzania. "As a bank, we are committed to offering low-interest loans to stakeholders in the LPG value chain, ensuring the growth of their businesses. Our objective is to play a central role in closing the gap in access to clean cooking solutions for underserved populations in Tanzania," emphasized Mr. Mponzi. Furthermore, NMB Bank has allocated 2.0 billion Tanzanian shillings for the current fiscal year to expedite the implementation of projects across the nation aimed at reducing carbon emissions. Earlier this year, the bank initiated an ambitious one-million-tree planting campaign as part of its efforts to reduce carbon emissions, which is progressing successfully, and there are indications that the target will be exceeded.
Speaking about the partnership, Mr. Benoit Araman, the Managing Director of Oryx Gas, mentioned that the company currently holds the largest market share in Tanzania, with 57 distribution channels spread across the country. "We are delighted to formalize this MoU with NMB Bank, and we believe that this new collaboration will not only bridge the existing LPG gap but also ensure that even those at the grassroots level have access to affordable LPG," stated Mr. Araman.
The partnership between NMB Bank and Oryx Gas Tanzania signifies a significant step towards enhancing access to cleaner energy solutions and promoting environmental sustainability in Tanzania.