The management of the long awaited Tanzania Cooperative Bank has started collecting over 15bn/- needed by the Bank of Tanzania (BoT) through share selling to the public.
Speaking to The Guardian in an interview, an official from the bank’s marketing and research unit, Ahadiel Mbughu, said completion of the exercise will enable the bank to start operations later on this year.
According to BoT regulations, any fully fledged financial institution must deposit such an amount of money as guaranteed for unforeseen events before starting operations.
He said the price for each share is 1000/- and individual members of Saccos are encouraged to purchase at least ten of them.
The minimum shares to be bought by a saving and cooperative society is 5,000, equivalent to 5m/-, while that for unions or federations 25,000 shares, equivalent to 25m/-.
Mbughu did not disclose the amount collected so far since the exercise started last month but noted that when the work is completed, they would start procedures to establish the bank which will be headquartered in Dar es Salaam.
“If all goes as planned, the bank will commence its operations in July this year,” he said.
He noted that the proposed bank will start with four branches to be located in Dar es Salaam, Mtwara, Mbeya and Mwanza regions.
According to the bank’s board chairman, Hassan Wakasuvi, once it becomes fully operational, clients would access loans at reduced interest rates to attract more loan applicants.
He was quoted recently as pleading cooperative members to buy as many shares as possible before and after launching of the new bank to upkeep the financial institution to live up to its vision and ideals of serving its clients.
He also urged non-cooperative members to join the bank by buying shares which would enable them to access loan facilities.
He also lashed out at farmers who tamper with their crops, including deliberate adulteration, before disposing them in the market, saying the act is against marketing ethics.
Instead, he urged crop producers to win the hearts of their buyers by producing high quality produce to fetch better prices in the markets.
Wakasuvi commended the government for its decision to waive tax on imported agricultural implements which would be a relief to farmers, praying for more waivers to other agricultural machinery to boost production.