On 26th November 2018, the Bank of Tanzania (BOT) issued a notice to the general public to inform that it has issued a banking business license to China Dasheng Bank Limited (CDBL).
The license allows the bank, located in Dar es Salaam, to carry out banking business in Tanzania as a commercial bank, commencing operations on the same day of the notice.
The bank is a joint venture between Chinese state-owned and private companies, with an initial capital of USD 40 million (TZS 100 million).
During the bank’s launch ceremony, the acting Chief Executive Nunu Saghaf stressed that the amount of capital showcases the seriousness which CDBL attaches to its Tanzanian business.
“The Bank of Tanzania requires a start-up capital of 15bn/- while we have put in more than 100bn/- to begin with. We are determined to provide adequate and quality services to our customers,” she said.
Meanwhile, the Chinese Ambassador to Tanzania Wang Ke said that the new bank is a testimony of China’s optimism on the future prospects of development of Tanzania.
China has become the biggest source of foreign direct investments (FDI) in Tanzania totaling USD 7 billion, and a major trade partner with USD 3.4bn in trade volume in 2017.
Ambassador Wang Ke expects the new bank to further facilitate investments, trade, and economic relations between China and Tanzania, while the Tanzanian banking sector will benefit from new skills, professionalism and up-to-date technology in the industry.
To this regards, the bank’s Board Chairman Ji Jiaqin explained that CDBL has plans to actively participate in the construction of RMB clearing center in East Africa, and reduce the exchange losses in trading between the Chinese and the Tanzanian currencies.