Government of Tanzania urges Lower Lending Rates

The Government of Tanzania has urged all banks in Tanzania to lower the lending rate to customers and to expand their operations to small and medium enterprises (SME’s) which will boost the Tanzanian Economy.

The call was made by Deputy Minister for Finance, Ms Saada Salum at a ceremony for Access Bank (Tanzania) Mwanza branch.

“Banks are supposed to reduce lending rates, I am informed that some banks charge as high as 21 per cent interest while offering very little interest for savings,” she said.

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Reducing lending rates will not be a problem because the government will create conducive environment through the Bank of Tanzania by establishing credit references for bankers, she added.

Apart from commending Access Bank Tanzania Mwanza branch for assisting communities and particularly by creating 500 jobs within five years of its operations in the country, she encouraged other banks to emulate efforts shown by the bank.

“This is a wonderful commitment the bank has made towards our people and especially to the youth, I encourage the bank and other banks to do the same,” she said.

The bank’s Executive Director, Mr Roland Coulon said that Access Bank Tanzania is a commercial bank which was established for the aim of providing financial services to small and medium enterprises in the country so as to increase their incomes.

Ms Salum’s call for reducing lending rates will prove beneficial for all parties considering small and medium businesses, SMEs in Tanzania are taking on a driving force form in the emerging Tanzanian Economy.

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