Africa-Press – Tanzania. ZANZIBAR President Dr Hussein Mwinyi on Friday challenged commercial banks and financial institutions to extend their services to rural areas where majority islanders live.
He told financial service providers to embrace Information Communications Technology in their operations to reach the rural mass, describing banking services as critical in speeding up social and economic development.
President Mwinyi was opening CRDB Bank’s third branch at Michenzani Mall building, bringing to three the bank’s branches in the Spice Islands.
He appreciated the work of the commercial banks but said there still challenges that need to be addressed, citing the exclusion of the rural folks as the most disturbing.
“At least by this year, Zanzibar has about 21 financial institutions including 13 banks, 37 branches and 70 ATMs, but most if not all of them are in urban area. Banks should reach people outside towns,” Dr Mwinyi said soon after opening the new branch, which also incorporates Islamic banking dubbed ‘Al Barakah.’
He mentioned other challenges, which the banks have to work on as difficult access to loans iwhose interest rates are extremely high; and low awareness among citizens in using banks services in the islands.
“Many people still keep their money at home, they need enlightment on the best and beneficial ways to handle money,” Dr Mwinyi said.
He however, commended CRDB for having plans to address the challenges and also support the development of entrepreneurs and small businesses, including programmes to train fishers and provide them with loans.
“It is a fact that CRDB has been doing a good job in supporting development plans in the country ,” Dr Mwinyi said , adding that technological innovations in communication can be utilised to extend awareness about financial services to the people in villages particularly at this time when thousands of people use mobile phones to make payments.
Zanzibar Minister of Finance and planning Jamal Kassim Ali also praised CRDB for its operations, which back government’s initiatives to uplift people’s lives, promising to ensure sustainably improved environment for investors.
The Minister also observed that rural communities are still highly underserved because financial institutions have avoided or failed to offer sustainable services in the peripherals, urging banks to widen their services because financial inclusion is important in economic growth.
CRDB Chief Executive Officer and Managing Director Abdulmajid Mussa Nsekela explained that the newly opened Michenzani branch will deal with convectional banking, Islamic banking (Al Barakah), and premium banking, promising to extend services to villages and increase Automated Teller Machines in addition to special programmes to support government spearheaded bue economy.’
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