Zanzibar. NMB Bank’s Chief Executive Officer, Ruth Zaipuna has said that the Bank, in partnership with the government, has financed a number of strategic sectors, including putting Sh1.6 trillion into agriculture as of last year.
Out of the funds, Sh400 billion was in the form of soft loans extended at an interest rate of nine percent in the sector Ms Zaipuna told over 500 delegates at the three-day 38th annual meeting of the Association of Local Authorities Tanzania (Alat) on April 24.
Ms Zaipuna said NMB’s engagements in national development also include corporate social investment, with at least Sh8 billion set aside for 2024.
“Of the Sh8 billion, Sh2.5 billion will be spent on building a special school in Dodoma, while the remaining amount will be invested in the priority sectors of the bank’s corporate giving policy, notably education, health, and entrepreneurship,” she explained.
Through its recently launched Nuru Yangu Scholarship and Mentorship programme, the bank has provided scholarships to 130 bright college students hailing from poor families.
Its special village banking strategy seeks to bring the unbanked segment of the population into formal banking. Through the village banking scheme, NMB targets to cover more than 1,000 villages that do not have access to formal financial services. Implementation of the strategy has included the use of the NMB Pesa Account service.
The product allows one to open an account digitally for only Sh1,000.
The product attracts no monthly charges. The account is instantly connected to NMB Mkononi, thus enabling customers to access up to Sh500,000 unsecured Mshiko Fasta digital loans without visiting an NMB branch.
“Since we officially launched it about two months ago, we have managed to open over 100,000 NMB Pesa accounts, and the target is to open over 1.5 million new accounts by the end of this year,” Ms Zaipuna pointed out.
The number of NMB Bank’s agents has increased to 34,000 across the country, compared to only 10,000 in 2021, and the target is to raise it further to 50,000 by 2026.
Ms Zaipuna lauded the government for putting in place a supportive business environment that has enabled it to continue excelling in the market, paying the rightful taxes and making mouthwatering dividend payouts to shareholders that include the government.
“It is for that reason that the Tanzania Revenue Authority has, for the last two consecutive years, recognised NMB Bank as the largest and most compliant taxpayer in the country,” she stated.
In his remarks to officiate the opening of the congress, the Minister of State in the President’s Office, Regional Administration and Local Government, Mr Mohamed Mchengerwa, called for stakeholders’ close collaboration in the fiscal space due to the pivotal role of taxes in financing development and delivering quality services.
The cabinet minister, who represented President Dr Samia Suluhu Hassan, challenged LGAs to set realistic revenue targets and employ creative measures in collecting tax income.
“Like the late Mwalimu Nyerere used to preach, revenues are the lifeblood of economies due to their decisive role in sustainable development and the delivery of services to the masses; therefore, you should ensure that they are not leaked or misused at all,” he emphasised.
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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
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The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
