Africa-Press – Tanzania. NMB Bank has set aside 5bn/- for lending bodaboda riders through NMB Mastaboda loan initiative that will help youths engaged in this business grow and contribute to economic development.
Statistics show that Tanzania has more than 2 million bodaboda riders but most of them remain unbanked.
Thus it is through NMB Mastaboda loan initiative that bodaboda business will be formalised and make riders reap immense banking services from NMB.
More than 300 bodaboda riders participated in the launching event graced by the Minister of the State in the Prime Minister’s Office (Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled), Ms Jenista Mhagama in Dar es Salaam over the weekend.
The riders are holders of NMB accounts that make them qualify for the Mastaboda loan.
Also for bodaboda riders to qualify for the NMB Mastaboda loan must hold the national ID card, banking with NMB for three consecutive months, and a member of bodaboda riders’ associations.
The Minister commended NMB for coming up with the solutions to employment problems that youth face in the country.
“It is my wish to see your business growing from owning bodaboda to possessing motor vehicles through which you can generate more income,” she said.
The loan initiative is complimenting government efforts to empower youth and take active part in building the country’s economy.
Ms Mhagama told them, however, to observe financial discipline and hard work as the key secretes in boosting and expanding bodaboda business to the next level.
She said the government was on belief that when financial services become more inclusive, more people will be able to access loans which are key in boosting and investing in various businesses.
The government will continue to collaborate with other stakeholders to address problems that bodaboda riders face so that their business grows to benefit the country’s economy.
Speaking earlier, the NMB Managing Director Ms Ruth Zaipuna said the launch of the Mastaboda loan is the response to Minister Mhagama’s request made in 2019 when she launched an event to launch Mastaboda QR.
She said the lender may increase the 5bn/- set aside for lending bodaboda riders through Mastaboda loan initiative in the first year if demand soars.
Ms Zaipuna said NMB has just launched the Mastaboda loan in Dar es Salaam and will be moved to other regions to make sure that all bodaboda riders access such loan.
NMB Chief of Retail Banking, Filbert Mponzi, said the bank had trained and equipped over 5,000 bodaboda riders and was now targeting to reach more than 75,000 bodaboda riders countrywide in one year in order to enhance efficiency in their business.
