The new Ecobank Tanzania managing director, Ms
Mwanahiba Mzee speaks to the Mwananchi Communications Limited managing
director, Mr Francis Nanai (left) and MCL executive editor, Mr Bakari Machumu
at MCL offices today. PHOTO|THE CITIZEN CORRESPONDENT
In Summary
Speaking when she visited Mwananchi Communications Limited (MCL)
offices this morning, Ms Mzee said clients’ ability to repay the loans was
improving and that by next year, everything will be fine again.
Dar es
Salaam. The new Ecobank Tanzania managing director, Ms Mwanahiba Mzee, has said
that the high levels of Non Performing Loans (NPLs) in commercial banks will
become a thing of the past next year.
Speaking
when she visited Mwananchi Communications Limited (MCL) offices this morning,
Ms Mzee said clients’ ability to repay the loans was improving and that by next
year, everything will be fine again.
This comes
against the backdrop of poor performance of commercial banks last year as they
grappled with high NPL levels, precipitated by clients’ failure to repay them
in the wake of a change in the management of the economy.
She however
warned the sector to be keen with lending risk sectors, citing the example of
agriculture.
Agriculture,
she said, required closed supervision as farmers lack capacity in terms of
skills, have bad absorption capacity and no tangible security.
“It is high
time we followed-ups on our customers to find out if the loans are used as
intended, if we are to reduce NPLs,” said Ms Mzee, who came into position in
July this year.
Advising:
“It is good to support the sector by dealing with farmers’ associations and not
individuals on the grounds that it is easier to follow-up on the former than
the later.”
The sector
depended very much on weather and thus it carries higher risks than any other
industry and it is difficult for banks to finance due to poor performance,
according to analysts.
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