The High Court of Tanzania ruled against the striking workers of National Microfinance Bank (NMB) in a recent decision. The strike, which lasted one day, was in response to the failure of workers to receive their lump sum benefit payments after the first round of NMB privatization in 2005. NMB claims that they cannot give the payments to workers because the government still has not transferred the money to the bank. Despite the resumption of duties, customers complained of poor service and several ATM machines ran out of money.
National Microfinance Bank has over one million customers, 120 branches and 100 ATMs in Tanzania. The company does not provide financial data on its website, nor does it report information to MIX Market, the Microfinance Information eXchange. Before its recent IPO, NMB shareholders included the Government of Tanzania (51 percent), Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (RABO Bank) (34.9 percent), National Investment Corporation LTD (NICO) (6.6 percent), Exim Bank Tanzania (5.8 percent), and the Tanzania Chambers of Commerce Industries and Agriculture (TCCIA) (1.7 percent). To learn more about the strike, please read this previous MicroCapital story.
By Greg Casey, Research Assistant
Daily News Online: “Business resumes at NMB”
Additional Resources:
Reuters: “UPDATE 1-Tanzania’s Microfinance bank workers strike”
Daily News Online: “TUICO leaders summoned for NMB strike”
MicroCapital Story: August 18, 2008: “MICROCAPITAL STORY: Tanzanian Government Will Bar Kenya and Uganda from Participating in National Microfinance Bank Initial Public Offering Worth USD 55m”
MicroCapital Story, January 4, 2007: “Tanzanian National Microfinance Bank to Be Listed on Dar es Salaam Stock Exchange by June 2007”
MicroCapital Story, October 6, 2005: “Tanzanian Microfinance Bank Begins Rapid Privatization as Government Sells 49%”
National Microfinance Bank: Home
MIX Market: Tanzania
Rabobank Group: Home
National Investments Company Ltd: Home
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