Majaliwa: Why we want even lower lending rates

Simiyu. The government has discussed with local financial institutions on the possibility of lowering lending interest rates and other deductions in efforts to attract more people to the banking sector, Prime Minister Kassim Majaliwa has said.

Mr Majaliwa revealed this during a ceremony to launch a new National Bank of Commerce (NBC) branch in Bariadi, Simiyu Region.

He said that there citizens who are afraid of taking loans from reliable financial institutions in the due to high interest rates and other deductions charged by the financial institutions.

“The good news is that we have discussed with the financial institutions, including NBC and they have already started working on the matter as soon as possible. So, let’s hope for the best,” he said.

He appealed to the bank to ensure that it opens up more opportunities for production and economic growth in the region especially through the business, agriculture and livestock sectors.

“You have done a very good job to bring your services to Simiyu Region. For a long time, the region has been the leading producers of cotton crops in the country, but its residents have been facing the challenge of capital to inject in their businesses,” he said.

According to him, the arrival of the bank coincided with the government plan to promote the region’s economic growth by dealing with the challenges that hinder the growth and operation of businesses in the region.

He said the speed of economic growth in the region was not sufficient despite the government investment in the maintenance of the road that connects the region with other regions in the Lake Zone.

He cited an example of the region’s Sh7 billion bus terminal which he said is currently not fully utilised.

NBC managing director Theobald Sabi said the opening of the branch aimed at expanding the bank’s scope of providing its services in all regions to reach more Tanzanians.

“Simiyu Region is a very important link in the economy of the Lake Zone. Thus, the presence of reliable banking services here in Bariadi, will greatly help to stimulate the pace of economic growth by opening new financial opportunities. Previously, our customers used to access our services through our agency network where here in Simiyu we have more than 30 agents,” he said.

“At the same time, this branch also collects government revenue through the Government Electronic Payment Gateway (GePG) and taxes on behalf of the Tanzania Revenue Authority (TRA). Therefore, I kindly appeal the citizens of Simiyu Region and neighboring areas to make good use of this branch in order to bring about economic development,” he added.