Dar es Salaam- TIB Development Bank, a leading financial institution in Tanzania, has revealed its significant contribution to the country's development endeavors, investing nearly TZS 980 billion in various projects as of September 30, 2023. These projects, spanning vital sectors such as agriculture, minerals, tourism, manufacturing, and other services, have played a pivotal role in fostering economic growth and creating employment opportunities nationwide.
According to Ms Lilian Mbassy, the acting managing director of TIB Development Bank, private sector initiatives accounted for a substantial 93 percent of the bank's financed projects, while the remaining seven percent were for public sector ventures. During a press briefing organized by the Treasury Registrar’s office, Ms Mbassy outlined the bank's achievements, highlighting key sectors that benefited from their investments.
"In the agriculture sector alone, we have financed 253 projects totaling TZS 334.7 billion, benefiting over 10,230 people across 23 regions. Additionally, in the energy sector, six projects valued at TZS12.03 billion have resulted in the production of 8.84 megawatts, positively impacting 500,000 households," stated Ms Mbassy.
The bank's support also extended to minerals (TZS 205.39 billion), tourism (TZS 154.95 billion), manufacturing (TZS119.29 billion), construction (TZS 45.33 billion), water (TZS 14.89 billion), education (TZS 14.82 billion), communication, and transport (TZS 5.4 billion). Furthermore, TZS 3.72 billion was allocated to financial partners, further fueling the country's economic growth.
Ms Mbassy emphasized that TIB Development Bank's strategic focus for 2023/2024 will be on critical sectors such as energy, agriculture, water, real estate, and manufacturing. To ensure efficient management and minimal risks, the bank has implemented rigorous measures, including a designated team of experts for loan application appraisal and collaboration with a government debt-collecting task force.
Moreover, TIB Development Bank has played a pivotal role in tackling non-performing loans (NPLs) by offering low-interest rate loans to various projects. Agriculture projects, for instance, enjoy rates between 4 and 5 percent, while energy and water initiatives benefit from rates between 6 and 7 percent and 6 and 10 percent, respectively.
Through these proactive steps and strategic investments, TIB Development Bank continues to contribute significantly to Tanzania's socio-economic development, driving progress and prosperity across the nation.