Finance and Planning minister Dr Mwigulu Nchemba received the dividend at a CRDB headquarters event in Dar es Salaam, hailing the bank for the dividend, as the increase in dividend resulted from good performance last year.
“Issuing a higher dividend is a sign that the bank was doing well owing to strategies that have been put in place,” he stated, hinting that the money would be directly injected into projects lined up in the 2021/22 budget and the Third National Development Plan 2021/22 to 2025/26, especially in the health sector.
He praised the bank for good performance in the first half of 2021 where profit increased by 26 percent from 70.4bn/- in 2020 to 89bn/-, similarly lauding the bank’s initiatives in contributing to national development. Its tax contribution stood at 181.4bn/- last year, he stated.
“I am impressed by the CRDB Bank’s strategies to support the government in creating jobs through internship and graduate development programs,” he declared, elaborating that the government has taken several strategies this year to help improve financial sector performance.
This includes reducing the level of bank deposits in the central bank, establishing a lending fund for financial institutions and reducing amounts of capital required for providing loans to the private sector, he said
Danish ambassador Mette Norgaard Dissing-Spandet said her country was proud of its investment with the CRDB Bank through the Danish International Development Agency (DANIDA).
She hailed the government for the strong cooperation it has been showing to Denmark, noting that the positive financial results that the bank has been recording show how it has seriously invested in innovative products and services that respond to current needs.
CRDB Bank board chairman Dr Ally Laay said the dividend handed over is part of the 165.2bn/- profit after tax obtained in the 2020/21 fiscal year, assuring the public that the bank will continue improving its services to meet shareholder expectations and enhance services to the general public.
“The shareholders' conference conducted virtually in June approved a dividend of 22/- per share which is an increase of 37.5 percent over the previous dividend, making this year’s dividend payout reach 58bn/-,” he elaborated.
He commended the government for generating a conducive investment environment, which has helped the bank to make its activities more effective and enhance its contribution to economic growth.
CRDB Bank executive director Abdulmajid Nsekela assured the minister that the bank will continue working closely with the government to improve financial services and enable more people including those in remote places to access credit services, promoting financial inclusion in the country.
The dividend to the government was handed over through the DANIDA fund, meanwhile as the bank also issued dividends to public institutions such as PSSSF, NSSF, ZSSF, NHIF, the Local Governments Loans Board, the Umoja Unit Trust scheme, the TCCIA Investment Co. Ltd, the Western Zone Tobacco Growers Cooperative Union Ltd (WETCU) as well as district councils like Mbinga (Ruvuma Region), Shinyanga, Mufindi (Iringa Region), Chunya and Rungwe (Mbeya Region).
The government is the main shareholder in CRDB Bank with 21 percent of shares through DANIDA, an aid agency of the government of Denmark, with public institutions owning 17 percent of its shares, he added.