CRDB Managing Director, Abdulmajid Nsekela said this week while on a field visit to Morogoro based factory that the manufacturing industry has played a key role in boosting the country’s growth to lower middle income status as announced by World Bank recently.
Nsekela who accompanied the bank’s board of directors, further noted that as demand for sugar increases in the domestic market, CRDB is ready and committed to support Mtibwa Sugar’s growth just like many other manufacturers.
“CRDB is proud to be associated with Mtibwa Sugar’s sustained growth and as a bank we promise to continue supporting local industries with capital because by so doing we develop their capacity to meet both local and foreign markets demand,” he noted.
He further added that growth of industries contributes directly to rapid economic development of the country. The youthful CRDB chief who is also Chairman of Tanzania Bankers Association explained that the government has put in place an enabling environment to encourage private investment in manufacturing with backing from the financial sector.
“Today we are here at Mtibwa Sugar but prior to our visit here, we had been at Kagera Sugar which is our routine way of engaging with customers to listen to their needs from their place of business,” Nsekela added while stating that the visit enables the board and management see how best to serve clients.
Official statistics show that in 2019/20 season, the country produced 378,449 metric tons of sugar while demand stands at 710,000 tons of which 545,000 tons are for consumption while 167,000 tons are for industrial use. Local sugar producers thus only meet 67.7 percent of the domestic demand.
Mtibwa Sugar’s Factory Manager, Stan Rau paid tribute to CRDB’s board and management for supporting the former state owned company revive production and grow into what it is today. “The bank had confidence in us at a time when performance was very poor with low production,” Eau said.
He said Mtibwa Sugar which was privatised in 1999 with almost zero production, managed to increase sugar production to 50,000 metric tons by 2006 but an influx of cheap smuggled sugar forced annual volumes plummet to 15,400 tons in 2016.
“We are targeting to increase production to 40,000 tons during the 2020/21 season,” Rau said while commending President John Magufuli for advocating industrial development and protection of the domestic market from smuggled sugar which has negatively affected local manufacturers.
CRDB Board Chairman, Ally Laay also assured Mtibwa Sugar owners and management that his board will continue giving management appropriate policy guidance to ensure that the bank serves the public and other stakeholders. “As a board, we will continue to give policy guidance and other directives top management to ensure that the bank sustains growth and business success,” Dr Laay said.