Bank starts empowering local engineers through collateral-free loans

08Nov 2019
Marc Nkwame
The Guardian
Bank starts empowering local engineers through collateral-free loans

ONE of the country’s leading financial institutions, the CRDB Bank has just launched special collateral free loans for indigenous engineers especially those aspiring to be more active in the construction industry but constrained by lack of capitals.

Mrisho Gambo

The CRDB Small and Medium clients’ Executive Director, Boma Rubala pointed out here that, many local engineers despite being very capable and competitive in the construction sector, have been unable to win floated tenders, due to lack of enough capitals to involve fully in the industry.

“And even when they try to apply for loans in other banks, they usually fall short of requirements because, most financial institutions demand collaterals that are beyond local engineers’ reach especially those that are just launching into the trade,” added Rubala.

But according to the CRDB official, all the local engineers need to do now is simply take their projects and work contracts to the bank and secure loans to aid the undertakings; “I insist there will be no collateral demands from our side,” stated Rubala.

For his part, Eng Samwel Rwandalla, the Director of Western Engineers Limited, admitted that, many of them have been winning tenders for small projects due to limited range of their respective capitals.

“And that is why almost all big civil engineering projects remained in the exclusiveness of foreign firms who can afford the required heavy investments,” said Eng Rwandalla, adding that alien engineers are usually supported by their respective governments in consolidating large capitals to win tenders in developing countries.

Previously, when opening the official gathering of CRDB officials with local engineers in Arusha, the Regional Commissioner, Mrisho Gambo also expressed concern why all major civil engineering projects should be taken by foreign firms while there are better qualified Tanzanians to undertake the works.

“From my recent observations, most of the engineering projects handed to local companies crawled slower than foreign held ones, but I have now understood that our people are being crippled with insufficient capitals,” he said.

According to Gambo, the government cannot undertake all the required projects without involving the private sector and used the occasion to thank CRDB management for empowering local engineers towards future development when locals will be in a better position to build the country roads, bridges and other heavy engineering projects.