In the wake of expanding business transaction between Tanzania and China, the National Bank of Commerce (NBC) yesterday launched a new offering which will enable its clients and customers to trade with their Chinese counterparts, using the Chinese currency, the Yuan.
The launch which was held in Dar es Salaam was attended by NBC’s customers and clients, the bank’s Managing Director, Mizinga Melu, senior management officials and the Ambassador of China to Tanzania, and representatives from the mission.
Speaking at the launch, NBC’s Head of Treasury, Pius Tibazarwa said: “We have decided to launch the Chinese currency offering, after realising the need for the offering, owing to the growing business between Tanzania and China. We believe that this offering will ease the way our customers do business with their partners in China and vice versa.”
He added, “NBC is always looking for ways which we can create convenience for our clients and customers, and this is made evident by our organizational mission which is to help people achieve their ambitions- in the right way”.
Commenting on the launch Tibazarwa said: “We are aware that Tanzania is still a young market and that financial services still have a long way to go but it is my belief that we are making significant progress in the right direction, and the launch of this offering bears testament to the progress we have made.”
The offering will enable Tanzanian traders and businesses to pay for goods and services from Chinese firms directly by using the Yuan, therefore reducing costs incurred through exchange rates from purchasing other currencies.
Trade between China and Tanzania has been on the rise in recent years. In 2011, the total trade volume between the two countries reached USD2.15bn, and last year it hit the USD2.5bn mark. It is projected that trade between China and Tanzania will continue to grow at more than 15 percent annually.
According to the central bank, the increase is due to receipts from travel, trade of manufactured goods and traditional exports. During the last decade Chinese investment in Africa increased from $900m in 2000 to $68bn in 2010 aided by its ‘China-Africa” policy – trading with Africa without any conditions.
This becomes the second bank to begin using the Chinese currency in Tanzania. Last year.