Loans for the group of traders will range from 500,000/- to 5m/- based on the Memorandum of Understanding (MoU) linking the bank to the association to help the group revive its activities after a series of catastrophic events , from the fire market to the destruction of commercial spaces.
As part of the pact, NMB will train small traders on how to manage their finances, offer loans on favorable terms and link them to a digital system to be registered across the country.
Additionally, the lender will integrate small merchants into financial inclusion, introducing special ATM cards for small merchants to use at its outlets across the country.
Filbert Mponzi, the head of retail banking, said NMB bank will continue to maintain its role in supporting the growth of small and medium-sized enterprises (SMEs), noting that the two parties have agreed to cooperate on skills development. small traders.
The bank seeks to improve its capital, investment capacity and business skills, exposing traders to all kinds of opportunities that can benefit their business activities, he said, noting that NMB Bank will cooperate to ensure the timely availability of information on trade trends, markets, financial policies and developments in retail business as a whole.
Additionally, NMB Bank, in partnership with Reliance Insurance, plans to expand insurance facilities for small traders against fire, flood and accident. Insurance cover is targeted in the range of 10,000/- per year for a trader with capital of up to 500,000-60,000/- for a company with 10m/- of capital, he said. affirmed.
Since its inception in 2000, NMB Bank has provided loans ranging from 50,000/- to 50 million/- for small businesses, he said.
Juma Samwel, Ministerial Deputy Director for Community Development, praised NMB Bank for its initiatives helping small traders to grow their businesses, calling the signed agreement historic, expecting it to play a key role in support for the growth of small business activities, also benefiting from the training to be provided by the bank.
Ernest Masanja, the group’s national chairman, praised NMB Bank for its support, providing leadership in the association’s willingness to work with the bank.
“This agreement provides a solution to the challenges we were facing. All the programs that will be covered by the memorandum of understanding are also useful for the small commercial group as a whole”, he underlined.
Last month, President Samia Suluhu Hassan said the government was set to build modern markets in regional capitals across the country for small traders. The markets will operate around the clock, connected to the necessary infrastructure to enable smooth operations, she said.
The president unveiled the plan during a meeting with traders trying to recover from repeated fires in major markets in Dar es Salaam, to discuss ways to address the crippling challenges faced by traders.