The bank’s Managing Director, Ibrahim Mwangalaba told ‘The Banker’ earlier this week that 44bn/- remains unpaid by the beneficiaries who continue paying in installments.
“Most of our beneficiaries are SMEs engaged in agri-business, food processing, petty trading and food vendors popularly known as ‘Mama lishes’ the majority of which are informal,” Mangalaba said as the Dar es Salaam based bank marks its sixth anniversary.
He pointed out that loans were issues to the private sector including micro-businesses ranging between 50,000/- and 2bn/- mostly meant to grow such businesses. “Apart from giving them loans, we also train them in how to run their businesses professionally by keeping records,” he added while pointing out that this year, the bank has set-aside 60bn/- for lending to SMEs to grow their capital.
“SMEs which are interested to access loans from our bank should have a business with least six months and above in operation,” the Maendeleo Bank Plc CEO noted.
Among the key beneficiary groups include 800 poultry farmers who have borrowed over 2bn/- between March last year and this month.
Mwangalaba said the bank which is listed at Dar es Salaam Stock Exchange’s Enterprise Growth Market, started with a capital of 4.5bn/- in 2013 and has since grown to 14bn/- as of this year thanks support from depositors, shareholders and the private sector.
The bank has grown its customer base from nil to more than 26,000 over the six year period served in three branches in Dar es Salaam and 200 agency banking centers in some parts of the country.
“Next year we want to continue expanding agency banking services in Arusha, Dodoma, Iringa, Mbeya and Mwanza by targeting rural areas where the highest population of the unbanked resides,” he pointed out.
Established in 2013, the bank is owned by the Evangelical Lutheran Church in Tanzania-Eastern and Coastal Diocese. Maendeleo was registered as a limited company in February 2011 before changing to a public limited company in June 2013 when it was listed at Dar es Salaam Stock Exchange’s Enterprise Growth Market window.