The National Microfinance Bank (NMB), a commercial bank in Tanzania, has announced its intentions to provide ‘Juhudi’ loans of TSH 5 million (USD 3,300) to TSH 500 million (USD 330,000) to entrepreneurs in the country. According to Mr Kees Verbeek, the chief commercial officer of NMB, the issue for entrepreneurs is not whether loans are available, but rather if the interest rates, which reportedly vary between 18 to 25 percent in Tanzania, are affordable. Juhudi loans will be distributed at a 15 percent annual interest rate. In addition to enjoying lower interest rates, beneficiaries of Juhudi loans will have access to business skills training provided by NMB and other unnamed partner organizations. The total amount to be lent under the program has not been announced.
In its 2009 annual report, NMB reported TSH 1.67 trillion (USD 1.1 billion) in total assets and a dividend per share of TSH 31.4 million (USD 21,500).
By Conner Brannen, Research Assistant
About National Microfinance Bank (NMB):
The National Microfinance Bank (NMB) was established in Tanzania in 1997 by the National Microfinance Bank Limited Incorporation Act. Initially the bank only provided payment services and savings accounts – and very limited borrowing services. However, as of mid-2010 the bank has been expanding its lending operations. NMB is one of Tanzania’s largest banks with 135 branches covering 80 percent of Tanzania’s districts. In its 2009 annual report, NMB reported TSH 1.67 trillion (USD 1.1 billion) in total assets and a dividend per share of TSH 31.4 million (USD 21,500).
Having previously controlled the entire operation, the Government of Tanzania sold 49 percent of its shareholdings in NMB in 2005 to a consortium led by the Cooperative Centrale Raiffeisen-Boerenleenbank B.A. (‘Rabobank Group’).
Sources and Additional Resources:
AllAfrica.com “NMB Juhudi Loans Boost Access to Credit,” by Jaffar Mjasiri, July 26, 2010: http://allafrica.com/stories/201007270068.html
MicroCapital Universe Profile: National Microfinance Bank (NMB): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Microfinance+Bank+%28NMB%29
MICROCAPITAL BRIEF: One of Tanzania’s Largest Banks, The National Microfinance Bank (NMB) Gives $63m in Loans to Small and Medium Enterprises (SMEs), May 31, 2010: https://www.microcapital.org/microcapital-brief-one-of-tanzanias-largest-banks-the-national-microfinance-bank-nmb-gives-60-5m-in-loans-to-small-and-medium-enterprises-smes/
MICROFINANCE PAPER WRAP-UP: Tanzanian Micro Enterprises and Micro Finance: The Role and Impact for Poor Rural Women, by Lucy Ssendi and Alistair R. Anderson: https://www.microcapital.org/microfinance-paper-wrap-up-tanzanian-micro-enterprises-and-micro-finance-the-role-and-impact-for-poor-rural-women-by-lucy-ssendi-and-alistair-r-anderson/
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