Benjamin Mkapa who was the third president of Tanzania, has praised the government’s decision of privatizing NMB Bank.
When launching his book “My Life, My Purpose” in Mwanza he said that privatization of the institution was due to his earlier decision during his regime in 1995.
In 1997, Mkapa’s government decided to create NMB bank after splitting up the former National Bank of Commerce (NBC).
After forming NMB in 1997, in the year 2005 Mkapa’s government sold 49% of NMB’s stock to investors of Rabobank in Holland.
“I am happy to see NMB is one of the biggest banks with big networks within the country serving local citizens in rural areas” Said Mkapa
Being annoyed with the ones criticizing his government’s decision of privatizing, President Mkapa said people should understand during that time it was a must to make decision to save the taxpayers money that was being wasted as allowances to manage public organizations.
In his book, there is a paragraph that states that those who criticize decision of privatization need to understand that during that time public organizations were in economic hardship to an extent that government had to use a lot of money of taxpayers to finance the operation of the organizations “…that is not one of the government’s money work” Explains Mkapa.
Speaking on the bank’s success, Acting Executive Director of NMB, Ruth Zaipuna said in duration of 22 years ago the bank has cleared shown to be a good example in privatization decision after being the option to all businesses in capital, and professional consultancy.
In duration of 22 years of its existence NMB bank has offered a total of 1.2 trillion to help in small business and medium businesses and other 2.2 trillion for loan to help private customers .In helping farmers ,Zaipuna said this year 2020 the bank has arranged to open more than 300,000 accounts for farmers so as to ensure farmers get their payment through special monetary system and therefore will improve in raising financial inclusion.
Zaipuna said NMB bank has continued with its cooperation with Government’s electronic payment system – GePG, thus until now there 590 government organizations that are joined in the system. Through GePG system, NMB bank enables collection of government’s total revenue of 2.1 trillion.
“We are doing this knowing it is our duty to support strategic government’s project NMB was the first bank to be integrated with GePG format” He said.