The National Microfinance Bank (NMB), a microfinance institution (MFI) 51-percent owned by the government of Tanzania, recently announced the launch of two new programs: AgriBiashara, to support agricultural value chains, and Wajibu, a set of youth savings accounts formed through a partnership with Women’s World Banking, a US-based nonprofit that aims to increase access to financial services for low-income women.
NMB has set aside the equivalent of USD 227 million over fives years for AgriBiashara to provide credit to agriculture value-chain approach actors, including suppliers, traders and exporters. Relative to previous programs, AgriBiashara increases the number of eligible crops from five to twelve.
Wajibu, which means “responsibility” in Swahili, is a group of three youth savings accounts: NMB Chipukizi Akaunti, NMB Mtoto Akaunti and NMB Mwanachuo Akauunti. NMB Chipukizi Akaunti is marketed as the first of its kind in Tanzania, allowing teens aged 13-17 to manage accounts in their own names. This is paired with a financial capability program, which is intended to increase awareness of financial services. The collaboration of Women’s World Bank was funded by the UK government’s Department of International Development, and the Foundation for Sustainable Development in Africa, a unit of the US-based Foundation for Sustainable Development nonprofit in Ghana. Details on NMB Mtoto Akaunti and NMB Mwanachuo Akauunti are not available.
As of 2016, NMB reported total assets of TSH 4.6 trillion (USD 2.1 billion), return on equity of 24.4%, and 2 million clients.
By Petra Barbu, Research Associate
About National Microfinance Bank (NMB)
National Microfinance Bank (NMB) is microfinance institution (MFI) that was established by Tanzania’s NMB Limited Incorporation Act. It is 51-percent owned by the government of Tanzania. The bank initially provided payment services, savings accounts and very limited borrowing services, but since mid-2010 the bank has been expanding its lending operations. NMB operates 142 branches reportedly covering 80 percent of Tanzania’s districts. As of 2016, NMB reported total assets of TSH 4.6 trillion (USD 2.1 billion), return on equity of 24.4%, and 2 million clients.
Sources and Additional Resources:
[1] NMB Launches Agribiashara to Revamp its Agricultural Financing
[2] NMB Partners with Women’s World Banking
[3] MicroCapital Universe Profile: National Microfinance Bank
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