The Tanzania banking sector is preparing to list shares of the newly established petty trader’s bank, the Tanzania Machinga Bank Limited (TMBL).
According to the Chairman of the Dar es Salaam Petty Traders Association (Vibindo), Gaston Kikuwi, establishment of the TMBL was both important and, ultimately, inevitable due to the increased need in the sector in light of the growing number of petty traders in the region.
The initial establishment of the TMBL proved to be necessary after the release of the 2007 Employment Policy revealed that approximately 75 per cent of the population was already employed in the petty trading business.
Recent reports have indicated that the ultimate purpose of this new bank will be to help facilitate the process of acquiring the necessary loans in order for new and legitimate business ventures to have enough start-up capital for the launch of thier new project.
The hope is that these loans will, in turn, perform their expected task and help to reduce the growing number of petty traders in that are currently already in Dar es Salaam.
Both the Bank of Tanzania (BoT) and the Dar es Salaam Stock Exchange (DSE) have already given their approval to the project, thus allowing it to comtinue with its forward momentum in its plans to list its shares in the near future.
In a recent interview that was reported in The Guardian, Mr. Kikuwi indicated that the TMBL is now at the stage of its development where it will soon begin to issue shares to stakeholders in order to raise the required amount of capital that is required by the BoT in order to sustain the bank, regulations which currently stand at a minimum of 5bn TZS.
In spite of this obstacle, the Vibindo Society currently has approximately 40,000 members across the country and is, therefore, in a good position to smoothly transition into the successful establishment of a new bank.
“We’re determined to raise that money as we have enough members who are determined to see the bank established,” said Mr. Kikuwi in the interview.