Zanzibar, – In a significant boost for Zanzibar’s burgeoning construction sector, NMB Bank Plc has unveiled a suite of enhanced banking solutions designed specifically for contractors, aimed at empowering local firms to undertake larger, more complex projects and significantly contribute to the island’s economic development.
The highly anticipated event, held at the Hotel Verde in Zanzibar, brought together key government officials, industry leaders, and a large contingent of contractors from across the archipelago.
This gathering was graced by the presence of the Minister of Works and Transport, Dr. Khalid Salum Mohamed, who served as the Guest of Honor whose presence underscored the government’s keen interest in fostering a robust and self-reliant construction industry. Leading the NMB delegation was the Bank’s Chief of Retail Banking, Filbert Mponzi who outlined the transformative changes.
The Minister of Works and Transport, Hon. Dr. Khalid Salum Mohamed expressed the government’s profound appreciation for NMB’s timely and impactful initiative that is emphasizing its significance for the future of Zanzibar’s development while also describing it as a fundamental pillar of national development.
“This is not merely a gesture of goodwill; it is a strategic investment in the very fabric of our national progress,” Minister Mohamed said.
The minister further urged contractors present to ensure seizing the unprecedented opportunities presented by NMB’s improved services for the betterment of the jobs they are given but to also make them more compitente in larger jobs that have been dominated by foreign contractors. He reiterated the government’s strong desire for local contractors to be actively involved in strategic projects, echoing President Mwinyi’s repeated calls for empowering local capacity.
“My fellow contractors, I urge you to visit NMB branches in Unguja and Pemba, embrace these opportunities, and utilize them for the significant benefit of your businesses and personal growth. These guarantees will empower you to compete for larger tenders, which have, for too long, been dominated by foreign entities,” Minister Mohamed passionately appealed.
On the other hand, the Bank’s Chief Retail Banking, Filbert Mponzi, in his welcoming address, highlighted NMB’s commitment to supporting the growth of local contractors. He explained that the enhancements were a direct result of extensive research into the economic capabilities of contractors and the pervasive challenges they face in securing tenders, often due to limitations in financial capacity.
“We recognized that the ability to secure financing and guarantees is often the primary hurdle preventing our talented local contractors from competing for and winning significant projects.” “Today, we are changing that narrative,” Mr. Mponzi stated.
The cornerstone of NMB’s new offerings lies in its dramatically increased financial guarantees. The bank has augmented the maximum Bid Bond Guarantee from TZS 2.5 Billion to a staggering TZS 25 Billion, and crucially, this increased amount is available without requiring collateral. This move is expected to open doors for contractors to bid on a far greater range of public and private sector projects, many of which previously remained out of reach.
Furthermore, NMB has significantly raised the ceiling for Project Guarantees, including both Performance Guarantees and Advance Payment Guarantees. Contractors can now access up to TZS 3 Billion per project without collateral, specifically for all Zanzibar Government institutions such as the Zanzibar Investment Promotion Authority (ZIPA), Zanzibar Social Security Fund (ZSSF), Zanzibar Housing Corporation (ZHC), Zanzibar Ports Corporation (ZPC), Zanzibar Airports Authority (ZAA), and various government ministries. This marks a substantial increase from the previous limit of TZS 1.5 Billion, providing essential financial backing for project execution and upfront mobilization.
“For strategic infrastructure projects like roads, buildings, and specialized suppliers for the Blue Economy Ministry, the bank is prepared to offer even higher limits, exceeding TZS 3 Billion, still without collateral, demonstrating a flexible approach tailored to critical national development areas,” Mponzi added.
Another pivotal improvement announced to contractors during the event is the decentralization of approval processes. To expedite service delivery, NMB Branch Managers across the country are now empowered to approve all Bid Bond, Performance, and Advance Payment Guarantee requests up to TZS 500 Million without requiring collateral.
This strategic delegation aims to significantly reduce turnaround times (TAT), with applications up to this threshold now being processed within 24-36 hours, provided all necessary documentation is complete. For larger applications exceeding TZS 500 Million, decisions will be made at the bank’s headquarters within 10 working days, a testament to NMB’s commitment to efficiency and responsiveness.
Adding his voice to the chorus of appreciation, Zanzibar Contractors Registration Board (ZCRB) board member, Eng. Khamis Ali Omary, lauded NMB’s efforts as a crucial step towards local economic empowerment.
“This initiative by NMB Bank is a testament to their profound commitment to our local economy and empowering our own people. “Our local contractors, our skilled workforce, and indeed, our entire community will undoubtedly reap the immense benefits of these expanded opportunities, thereby strengthening our island’s economic self-reliance and propelling us with renewed vigor towards a brighter, more prosperous future for all Zanzibaris,” the chairman asserted with conviction./
The enhancements by NMB Bank are poised to redefine the landscape for contractors in Zanzibar, enabling them to play a more central and impactful role in the island’s journey towards prosperity.
