Treasury hails CRDB Bank

20Oct 2020
By Guardian Reporter
The Guardian
Treasury hails CRDB Bank

​​​​​​​CRDB Bank Plc has earned praise from the Treasury and leaders of Kilimanjaro region for its decision to revive the defunct Kilimanjaro Cooperative Bank Ltd (KCBL) by injecting a 7bn/- capital boost.

Finance and Planning deputy minister Dr Ashatu Kijaji (C, foreground) in jovial mood shortly after cutting a ribbon in Dar es Salaam yesterday to re-inaugurate Kilimanjaro Co-operative Bank Limited after it received a 7bn/- injection in capital from CRDB Bank Plc. Others (from-L, foreground) include Bank of Tanzania deputy governor Dr Bernard Kibese, CRDB Bank Plc board chairman Dr Ally Laay and KCBL board chairman Dr Gervas Machimu (R). Photo: Guardian Correspondent

This input will go a long way in supporting the development of smallholder farmers through cooperative societies in the region, top officials said at a ceremony here yesterday.

The Deputy Minister for Finance and Planning, Dr Ashatu Kijaji expressed these sentiments when officiating at the launching of KCBL services, noting that a strong regional cooperative bank is an important vehicle to serve farmers with financial products and services.

She said that cooperatives are an integral part of the country’s Vision 2025 and President John Magufuli’s plans for sustainable development on the basis of rapid industrialization.

Expressing satisfaction with the CRDB Bank leadership’s decision to revive the vital cooperatives bank, she said the Ministry of Finance considers cooperatives as vital to central bank projections for the country’s economy.

CRDB Chief Financial Officer and acting CEO, Fredrick Nshekanabo urged farmers and leaders of cooperative unions to trust the new KCBL as it’s now revived and under strong management backed by adequate capital.

He said CRDB works in partnership with the government to ensure that development goals are attained in all aspects of the economy. “Our pledge to the government is through our slogan, ‘We are ready at all times,’” he specified, pledging that CRDB will continue bailing out through equity various cooperative banks, citing Tandahimba Community Bank, another beneficiary of a large capital boost.

Kilimanjaro Regional Commissioner Dr Anna Mghwira said KCBL did not collapse because of market competition but mismanagement, commending CRDB Bank for providing the top four management officials in the wake of injecting equity in the bank.

“The process to revive this bank was not easy but thanks to the Bank of Tanzania and the Treasury, CRDB Bank has come to the rescue and we hope it will stay stronger for good,” the RC underlined.

She also applauded BoT Deputy Governor Dr Bernard Kibesse and the central bank management as a whole for the support, whereupon the officers that CRDB will second to KCBL were listed, namely the head of finance, the head of credit, the head of business development and head of internal audit.