CRDB saluted for aiding Zanzibar’s economic drive

Zanzibar President Ali Mohamed Shein has said the country needs large and strong banks in order to spur the economic development agenda to the next level.

Banks are also supposed to be innovative by coming up with various local solutions for problems with a bearing on the welfare of rural communities.

“Banks are important in speeding up economic activities, especially by empowering the unbankable population,” Dr Shein said when opening the Chake Chake branch of the CRDB Bank in Pemba.

CRDB becomes the fourth player in Pemba, an archipelago of Zanzibar. Others are TPB Bank, NMB and People’s Bank of Zanzibar. Dr Shein said for instance, that banks like CRDB, which had a strong vision on micro financing, would assist small and medium investors in rural Pemba to access credit and expand their businesses.

“I am pleased to hear that you are now working closely with the Ministry of Industry, Trade and Marketing to develop small factories for seaweed and salt harvesting. “I also ask you (CRDB) to throw your weight behind clove farmers, since the Isles government wants to revive the crop in a big way,” Dr Shein said when addressing the audience at the bank’s inaugural ceremony.

The revolutionary government is offering good prices for Grade One dried cloves, of 14,000/- a kilogramme, compared to 2,200/- four years ago. Ambassador Amina Salim Ali, the Minister of Industry, Trade and Marketing, said more cloves would be bought during the season that has just started than in the previous one, because the higher prices had motivated farmers to increase yields.

“We needs banks like CRDB to chip in and assist us through loans and a simple platform for farmers’ payments,” the ambassador said. During the last season, 2500 tonnes of cloves were bought at an average price of 8,700/ a kilogram.

The government was also eager to empower fishermen through provision of motorpowered fishing boats that in an ambitious project that was launched early this year.

“A boat construction yard will be created in Unguja to build the boats. We want fisherman to go further in high seas where the catch is considerably big,” Ambassador Amina said.

CRDB Chairman Ally Hussein Laay said the bank opened the Pemba branch to foster economic growth of the people and the island as a whole. “The bank sets to address the challenges small and medium investors are facing, especially in accessing loans… we are planning to introduce Islamic banking as well,” Mr Laay said.

CRDB Managing Director Dr Charles Kimei said the bank was behind Dr Shein’s endeavour to uplift rural the economic status of the communities, and spur economic development.

“The agricultural sector is top on our loan portfolio… we will continue to lend farmers despite others running away from the field saying it was too risky area to venture into,” Dr Kimei assured the President.

CRDB had issued loans totalling 3.3tri/- by the end of June in various fields, including agriculture, construction, trade, industry, fisheries and Saccos.