Youths in Tanzania expect to have their first bank starting operations on January 1 next year with a capital of 5bn/-.
The deputy coordinator of the bank, Christopher Ngubiagai, said this on Sunday at a one-day meeting on youth development policy at Ardhi University in Dar es Salaam.
To be known as Tanzania Youth Bank (TYB), it would be supported by shares contributed by youths countrywide. Every share would be sold at 1,000/-.
“No one will be allowed to purchase all shares valued at 5bn/-,” he said, adding that the bank would be operating countrywide.Ngubiagai told about 170 participants that although the process of introducing it was initiated by the CCM Youths, the bank would not be owned by the party’s youths, but by the shareholders of different cadres and ideologies.
The board of directors would work professionally it will be free from any political ideologies.
The meeting was organised by Restless Development, an NGO based in the city, gathered youths from different parts of the city including Kinondoni and Temeke municipalities, higher learning institutions, UV-CCM and UV-CUF.
Among other things, the participants discussed issues pertaining to financial banking services and poverty reduction.
He said that the bank would offer loans to individual youths, groups, credit societies and sponsor training on entrepreneurship in various activities including agriculture and fisheries and providing equipment to them as well as scouting for markets for them.
Generally the bank would dish out loans to sectors such as agriculture, pastoralism, fisheries, entrepreneurship, arts and mining, he said.
He said the loan payment interest would be 1.25 per cent per month.
The bank would operate as an agency of the higher education students’ loan board, Tanzania Revenue Authority and insurance firms.
The bank has already been recognised by the World Youth Bank based in the US that it would seek financial assistance from it as soon as it secures a licence.
SOURCE: THE GUARDIAN
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