Tanzania: NMB to introduce financial literacy programme

NATIONAL Microfinance Bank (NMB) plans to introduce financial literacy programme intended to educate the society on various fiscal matters as a way of nurturing new customers.

This was said on Wednesday in Dar es Salaam by the NMB Head of Marketing Mr Iman Kajura on the 35th Dar es Salaam International Trade Fair (DITF) that customers need to be imparted financial knowledge and skills.

''Customers are created not born. The programme will be an important milestone in creating new and potential future customers on banking services,'' he said.

Some of the major issues to be covered in the programme he said would include savings, unplanned borrowing, financial plans and business proposals. He said by imparting saving knowledge on school children would motivate them to utilise financial services.

He said for most people begin to utilise banking services on maturity or even at advanced age and sometimes on situation where a bank account is needed as one of the requirements for getting certain services.

Mr Kajura said for example, bank account was one of the prerequisite for one to be admitted to the higher learning institutions.

He said the programme would be conducted through business clubs spread almost throughout the country where there were NMB branches. In this years' DITF, 45 Small Medium Entrepreneurs (SMEs) financed by the bank participated in the exhibitions.

He said the 45 SMEs from different parts of the country were part of the 150,000 who secured loans from the NMB and some of them have advanced businesses.

''The programme started some three years ago with a goal to empower entrepreneurs own and run own businesses,'' he said.

Ms Lilian Koko, an entrepreneur from Musoma Region, one of the beneficiaries of the NMB loans dealing with wine and food products started with just 400,000/- but has grown with the bank to a capacity of borrowing about10m/-.

One of the hurdles that need government interventions was the problem of packaging materials which were at most times unavailable. ''This was increasing the cost of doing business while lessening profit margin,'' she commented.