Africa-Press – Tanzania. The Association of Petty Traders has said the 200bn/- set aside by NMB for loaning small scale businesses will be a game changer in their businesses and a key instrument in lifting them from poverty.
The Association’s National Chairman, Elias Matondo said at a meeting held in Dodoma yesterday that the fund will play a transformational role from being called hawkers to big businesses.
“We thank the government and NMB for making possible this meeting that will help in running and growing modern businesses and enhance their contribution to economic development,” he said at a meeting called to discuss challenges facing petty traders and find out lasting solutions.
The meeting brought together petty traders regional leaders, government officials from the ministries of Regional Administration and Local Government and Community Development, Gender, Women and Special Groups as well as Police Force.
This is a fundamental initiative that is supporting President Samia Suluhu Hassan quest to address challenges facing the youth, especially lack of capital for starting up their businesses
Under the pact, NMB among other things will train petty traders on how they can manage their business and financials, offer soft loans as well as provide a digital system that will register all the petty traders across the country.
From the allocated budget, petty traders will now be able to get a loan between 500,000/- and 5m/- from NMB bank.
Moreover, the lender will bring petty traders into financial inclusion whereas it has already introduced special MasterCards for them to start banking with NMB Bank.
Speaking at the event, the Permanent Secretary in the Ministry of Community Development, Gender, Women and Special Groups Dr Zainabu Chaula called upon petty traders to grab the NMB loan opportunity to bolster their capital and run modern businesses.
Dr Chaula touted for petty traders’ integrity, commitment as well as honouring loan repayment obligations so that NMB bank can continue to reach and lend more hawkers in the country.
The NMB Head of Bancassurance, Martine Massawe said the bank has established the initiative to lift petty traders from doing informal businesses to engaging in modern business.
It is expected that in five years, the project will be fundamental for the growth and development of hawkers’ businesses.
Mr Massawe said the bank has agreed with petty traders in collaboration with the government to make sure that the amount set aside benefits the right individuals.
He said there will be a special account for petty traders and the bank has put procedures for introducing them at each branch.
Speaking during a signing event yesterday, NMB Bank Chief of Retail Banking Filbert Mponzi said the bank will continue to maintain its role of supporting the growth of Small and Medium Enterprises (SMEs).
“We have agreed to cooperate on skills development for petty traders, improve their capital, investment and business as well as exposing them to all opportunities that are beneficial for their business,” he said.
Also, they will cooperate on ensuring timely availability of correct information on the business trend, market, policies and progress of the petty traders.
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