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Machinga bank still on the drawing board

28th March 2012
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Petty traders (Machinga) at Congo street in Dar es Salaam

The establishment of the long awaited community financial institution for petty traders in Dar es Salaam commonly known as Machinga Bank will take more time due to among other reasons ‘political interference’.

Speaking to The Guardian in Dar es Salaam over the weekend an official of the envisaged bank, Gaston Kikuwi said the institution has failed to kick off due to interference from some politicians for their own reasons.

“We had some politicians working with us in the initial steps of establishing the bank, but after achieving their objectives they are no longer with us,” he noted.

He revealed that after a long delay, they had now come up with new plans to speed up establishment of the bank.

“We have formed a special committee of four people who would oversee action plan for the establishment of the bank,” he said.

He said the committee has been given six months from February this year to accomplish the plan.

He said the committee will from next week start to review the initial draft which was completed last year.

It was earlier announced that the bank planned to raise money through selling shares to the public.

During the first phase they raised 90m/- out of the 250m/- needed to set up a community bank.

According to Kikuwi 50 percent of the shares were supposed be sold to the organisation, 40 percent to members while other individuals will be allocated 5 percent and 4 was for investors.

Experts say the establishment of the bank would help the increasing number of traders in Dar es Salaam by providing them with essential start-up capital. It is estimated that the region has over 100,000 petty traders.

The bank would provide loans at affordable terms for the petty traders.

SOURCE: THE GUARDIAN
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