Africa-Press – Tanzania. ZANZIBAR President Dr Hussein Mwinyi last February appointed a seasoned banker and former University of Dar es Salaam Lecturer Dr Muhsin Salim Masoud to head the People’s Bank of Zanzibar (PBZ). In an interview with Staff Writer MASATO MASATO, the new Managing Director vows to transform the fivedecade old financial institution into a trillion bank within three years…
Q: CONGRATULATIONS for the new responsibilities.
THANK you!
Q: Any new vision that you are bringing in Zanzibar’s 55-year old and largest financial institution?
The People’s Bank of Zanzibar (PBZ), as you rightly put it, is the oldest and largest financial institution in Zanzibar. Yes, I have a vision, which is well articulated in our fiveyear—2021/2025—strategic plan, currently under the approval levels.
We aspire for operational efficient, affordable and competitive commercial bank that accommodates a fully-fledged subsidiary Islamic Bank in Zanzibar and mainland Tanzania.
Q: It’s almost half a year since you were appointed to your current post on February 11, 2021. How did you find the bank, operationally?
As I have already said, PBZ is the industry giant in Zanzibar both in terms of profitability and asset growth. But, there are still untapped business potentials, which we are determined to explore, exhaustively. We want to amplify the impressive performance that the bank already enjoys.
We envisage retail business especially issuance of financing to employees; we also target corporate customers albeit cautiously. Generally, we want to widen the scope of businesses via more branches particularly on Tanzania mainland; increase the number of service centres and recruit more PBZ agents.
Plans are underway to establish an aggressive business department, which will be entrusted with the task of promoting the bank’s business, with the aim of making PBZ one of the largest banks in Tanzania. We aspire becoming the trillion-bank by 2023.
Q: Briefly, how is PBZ performing in the industry especially now that the entire world is grappling with the devastating effects of COVID-19?
True, Covid-19 has had devastating effects to not only PBZ or Zanzibar but the entire global economy. Of course, for the nature of our business, which relies on tourism sector, we were hard hit especially during the lockdowns. Fortunately, Tanzania and Zanzibar in particular had been instituting remedial measures against the outbreak.
These measures helped to boost confidence on Zanzibar as the best place to visit. Last year, we received many Russian tourists whose support to the economy we highly appreciate.
Q: Generally, how can you describe the environment for the banking business in Zanzibar?
The banking environment in Zanzibar is good. The tourism sector is contributing immensely to the banking business; we have also the clove business whose payments use the banking system.
As per the government directive, all payments to clove growers must be channeled through the bank, and that is good business for us. PBZ is also focusing on retail banking through issuance of financing facilities to the workers.
Gladly, huge projects that are underway promise good business for the banks because they (projects) will come with demands for banking facilities in the execution of construction projects, for instance. And, PBZ controls about 50 per cent of the domestic market in terms of both customer deposits and financing.
But, we have to improve our services to survive the fierce competition. Truly, the market competition is tense and many banks are coming in.
Q: The eighth-phase government has embraced the blue economy as the engine of all drives towards social and economic prosperity. What is the role of PBZ in this endevour?
We have a great role to play. Actually, the main focus of our five-year strategic plan is on the blue economy although we are already contributing greatly to the sector through massive financing of related projects—marine transport, fishing and fish processing. Even our sponsorships prioritize events that have an impact on the blue economy.
We have just, for instance, sponsored Zanzibar international marathon 2021, which we firmly believe will have immense benefits in the country’s tourism sector.
Q: How is the bank embracing new technology in its operations?
It’s unfortunate that many people still have a misperception of PBZ as an outdated bank but the truth is we are very much modern. We are working hard to automate all our operations for increased service efficiency to customers. Already, we have VISA card and we are working on MASTER card to meet the diverging customer demands.
Through mobile and agency banking as well as Points of Sales (POSs), we are determined to get the best out of technological advancements. We want to go fully electronic; and we have already, for instance, discarded papers in our management meetings. The aim is to turn PBZ into a fullyfledged paperless bank by 2024.
Q: Poor customer care remains a serious problem among many service providers—including financial institutions in Zanzibar and Tanzania as a whole. Is PBZ an exception?
No, it’s not. We have serious challenges of poor customer care but we have started tackling them, vigorously. It’s currently highly prohibited for a PBZ front office officer to use a mobile phone during work hours—I have already issued that directive to all branch managers. And, we have systems to receive customer complaints and we plan embarking on on-site training on customer care. Of course, it might take time to address all the challenges because some issues are cultural.
Q: Just last year PBZ acquired a 75 per cent stake in MUCOBA in efforts to widen its operations. What other expansion strategies are underway?
We have two approaches in our expansion drive. Firstly, we target to open at least two branches annually, focusing on high business potential areas in Tanzania mainland—Arusha, Mwanza, Tanga and Mbeya. And, in addition to our operational branch network in Dar es Salaam and Mtwara; Dodoma and Tandahimba branches are ready for launch anytime. Secondly, we will grab opportunities for mergers and acquisitions as they will arise.
Q: How is PBZ faring in corporate social responsibility?
We do fairly well in CSR. We have a certain percentage of our profits that we give back to the community and our priority areas are education, water infrastructure and sports. However, we plan to establish a special foundation with CSR professionals to do the job on our behalf.
We will be giving the funds to the foundation, which will allocate them more professionally and leave us with what we can do best—banking business.
Q: Under your tutelage, where do you see PBZ in the next five years?
My dream PBZ is a giant financial institution; one of the top five banks in Tanzania; highly competitive and provider of the best services to customers. I dream of PBZ that will attract the best talents and retain the happiest workforce, which embraces ethical conduct in the industry.
I personally believe that there is nothing I can achieve as an individual unless I have the most capable people around.
