Dar es Salaam. The founder and chief executive officer of Yetu Microfinance Bank, which was recently put under the administration of the central bank, described the move as a surprise to the financial institution which was in the helm of sourcing more financing to improve capital.
Mr Altemius Millinga, who is also one of the depositors in the bank, said the bank was in different stages of raising funds from other partners to beef up their capital, adding that the regulatory control of the bank had stopped everything so far.
Mr Millinga said he was suspended from the bank, along other four senior staff, since September and the bank remained under a central bank official until December 12, 2022 when the statutory administration was announced.
The bank is listed on the Dar es Salaam Stock Exchange (DSE) and crossed to Afrinex Exchange of Mauritius.
“At the time of my suspension, we were working on a prospectus to raise Sh4 billion at Afrinex Exchange and we were negotiating with three other investors,” said Mr Millinga.
The bank went through on-site examination in June last year followed by a special examination in September, according to Mr Millinga.
“If the examination reports were availed to management and board, maybe we could have been in a better position to predict the December 12, 2022 governor’s surprise decision.”
The Bank of Tanzania (BoT) placed the microfinance lender under statutory administration for three months starting December 12, 2022, accusing it of failure to meet regulatory requirements regarding liquidity and capital adequacy.
“To permit Yetu Microfinance Bank Plc to continue with banking operations while under the state of shortage of liquidity and undercapitalization is detrimental to the interest of depositors and poses systemic risks to the stability of the financial system,” the central bank stated.
The move means the bank will not be open for normal business for a period of 90 days during which the BoT will determine an appropriate option.
The central bank said that such a decision aimed at protecting the interests of depositors and maintain stability of the banking sector.
How Yetu started
Mr Millinga along with five colleagues founded an NGO called Youth Self Employment Foundation (Yosefo) in 1997, with the aim of providing youth and women with access to credit and training them how to create their own employment.
In 2014, Yosefo established a company call Yetu Microfinance Ltd which in 2015 issued an IPO and subsequently got listed on the DSE before securing a banking licence in February 2017.
According to Mr Millinga, the bank’s total shareholders fund was Sh7.597 billion as per its 2021 audit report against the regulatory requirement of Sh5 billion. It then dropped to Sh6.8 billion at the end of the second quarter (June 30, 2022).
The bank has 12,350 shareholders who dominate the deposits and loans of the institution.
“Unlike commercial banks, our clients are our borrowers, shareholders and depositors. Our depositors were shocked to learn that Bank of Tanzania was putting our bank under statutory administration in order to protect depositors because we are the borrowers and we also own shares.”
Mr Millinga is now uncertain about the future of the microfinance bank as there is “no ongoing business while costs such as rent, salaries and other expenses remain constant.”
Microfinance policy
“If a commercial bank takes over, the clients will continue to lose their only hope for financial inclusion because it does not have a mission to serve the unbanked, like community banks do.”
This situation reminds him of the impact of closing of community banks such as Mbinga, Njombe and Meru.
“The customers of the banks which were closed remain excluded by the banking system… I think there is a better way of managing challenges in such banks.”
Mr Millinga reiterated the significance of microfinance and community banks in pushing for access to financial services and improve productivity of smallholder farmers, artisan fishermen, and SMEs.
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Africa: Rwanda Gets a Grip Of Marburg, But Mpox ‘Not Yet Under Control’
Monrovia — The Rwanda Minister of State responsible for Health, Dr. Yvan Butera, cautioned that while the country is beginning to see positive signals in its fight against the Marburg virus, the outbreak is “not yet over”. He, however, expressed hope that “we are headed in that direction”. The minister said the epidemiology trend, since the disease was first discovered in the country more than a month ago, is moving towards fewer cases.
Dr. Butera, who was giving updates during an online briefing yesterday, said in the past two weeks, only two deaths were recorded while 14 people recovered from the disease. He said Rwanda was expanding its testing capacity with 16,000 people already inoculated against the disease.
The priority right now, Butera said, is “rapid testing and detection”.
Marburg is a highly virulent disease transmitted through human-to-human contact or contact with an infected animal. The fatality rate of cases, which has varied over the period, is more than 50%, according to the World Health Organization. WHO said the highest number of new confirmed cases in Rwanda were reported in the first two weeks of the outbreak. There’s been a “sharp decline” in the last few weeks, with the country now tackling over 60 cases.
At Thursday’s briefing, a senior official of the Africa Centers for Disease Control, Dr. Ngashi Ngongo, said mpox – the other infectious disease outbreak that countries in the region are fighting – was been reported in 19 countries, with Mauritius being the latest country to confirm a case. He said although no new cases have been recorded in recent weeks in several countries where outbreaks occurred previously – including Cameroon, South Africa, Guinea, and Gabon – Uganda confirmed its first Mpox death. This, he said, is one of two fatalities reported outside Central Africa.
Dr. Ngashi revealed that there was an increase in cases in Liberia and Uganda. He said mpox cases were still on an upward trend.
“The situation is not yet under control.”
Source: allafrica.com
Tanzania: Exim to Raise Fund for Mental Health Facilities Upgrades
EXIM Bank to raise 300m/- over the next three years for financing essential services and infrastructure upgrades in mental health facilities.
The bank’s Head of Marketing and Communications Stanley Kafu unveiled this when introducing Exim Bima Festival 2024 as a platform for bringing together individuals, organisations and various sectors for raising the funds.
“Exim’s initiative aligns with the government’s broader goals to ensure that every citizen has access to quality healthcare, including mental health services,” he said.
The initiative, which is one of the events for celebrating the bank’s 27th anniversary is scheduled for Wednesday this week in Dar es Salaam.
Mr Kafu highlights that this year’s festival is not only about raising awareness of the importance of insurance in the society but also focuses on enhancing access to mental health services and improving the overall well-being of the nation.
Statistics from the Ministry of Health shows a staggering 82 per cent increase in mental health cases over the past decade.
Mental cases have risen from 386,358 in 2012 to 2,102,726 in 2021, making the need for mental health services more urgent than ever.
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Unfortunately, the country’s ability to address this growing challenge is hindered by a shortage of mental health professionals, infrastructure, medical equipment and essential medication.
For example, out of the 28 regions in the country, only five have facilities that provide adequate mental health services.
The most affected group is the youth aged 15 to 39, who represent the nation’s workforce, underscoring the need for intensified efforts to safeguard this generation for Tanzania’s future well-being and development.
Mr Kafu said by improving mental health services, Exim aims to contribute to the creation of a network of communities that can access care quickly and affordably.
Exim Insurance Department Manager Tike Mwakyoma said they are appreciating the support from partners in the insurance industry, who have stood by them since the last festival.
“Let’s continue this unity for the development of all Tanzanians and our nation as a whole,” the manager said.
Source: allafrica.com
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