By a correspondent from The Guardian [see article on IPP media here]
16th August 2011
Youths in Tanzania expect to have their first bank starting operations on January 1 next year with a capital of 5bn/-.
The deputy coordinator of the bank, Christopher Ngubiagai, said this on Sunday at a one-day meeting on youth development policy at Ardhi University in Dar es Salaam.
To be known as Tanzania Youth Bank (TYB), it would be supported by shares contributed by youths countrywide. Every share would be sold at 1,000/-.
“No one will be allowed to purchase all shares valued at 5bn/-,” he said, adding that the bank would be operating countrywide.
Ngubiagai told about 170 participants that although the process of introducing it was initiated by the CCM Youths, the bank would not be owned by the party’s youths, but by the shareholders of different cadres and ideologies.
The board of directors would work professionally it will be free from any political ideologies.
The meeting was organised by Restless Development, an NGO based in the city, gathered youths from different parts of the city including Kinondoni and Temeke municipalities, higher learning institutions, UV-CCM and UV-CUF.
Among other things, the participants discussed issues pertaining to financial banking services and poverty reduction.
He said that the bank would offer loans to individual youths, groups, credit societies and sponsor training on entrepreneurship in various activities including agriculture and fisheries and providing equipment to them as well as scouting for markets for them.
Generally the bank would dish out loans to sectors such as agriculture, pastoralism, fisheries, entrepreneurship, arts and mining, he said.
He said the loan payment interest would be 1.25 per cent per month.
The bank would operate as an agency of the higher education students’ loan board, Tanzania Revenue Authority and insurance firms.
The bank has already been recognised by the World Youth Bank based in the US that it would seek financial assistance from it as soon as it secures a licence.
– End of article –
Questions to consider:
- Is entrepreneurship it’s own field, or can an entrepreneur come from any field of study or work?
- When this institution begins operations, how will young people in remote areas of the country access their products and services? In other words, how will the information be disseminated and recieved?
It is very impressing idea, we as youth if we will join our little power we have, we could make wonders. It can not completely solve the problem of poverty and unemployement, but in some stance would reduce them. This plus other things like can help us to move foward.
This is a very nice project because it will contribute in reduction/eliminating unemployment to Tanzanian youth due to self employment enhanced by the small business capital from this bank. I will also be part of it!! Well done to those who initiated this!!
@Moses – Please tell us what you mean by being part of it! Will you be on the board of directors? It would be interesting for us here at Vijana FM to be in touch with someone who is involved to see how the project develops.
Thanks for the founder of this essential project for youth Tanzania but my worries are who are going to benefit with this opportunity?
How does the local youth going to benefit from this project?because from experience only those from urban are going to benefit for restance like Tanzania womens Bank,the women from low social economic status were not benefited from the project.
So take note of that for the development of all Tanzanian youths including universities students through Tanzania Youth Bank.
The idea is undoubtedly a perfect one. The question is, is it going to be perfectly implemented as well, for as much as i know, there are very many “wanna be fat stomachs” already focusing on that as a means of filling their empty buckets lavishingly…
uanzishaji wa benki hii ni wazo zuri sana ila bado ni changamoto wanafunzi ambao wanahitimu vyuo vikuu kwasababu wanakumbana na vikwazo wakati wa kukopa katika benki hii. hvyo 2naomba condition zipunguzwe ili kila mmoja aweze kufaidi kikamilifu