PM urges banks to support financially illiterate citizens

By Theresia Victor , The Guardian
Published at 06:00 AM Jul 04 2025
 Prime Minister Kassim Majaliwa
Photo: File
Prime Minister Kassim Majaliwa

PRIME Minister Kassim Majaliwa has called on financial institutions across the country to scale up financial education efforts and improve access to user-friendly banking services, particularly for citizens with limited financial literacy.

Speaking in Dar es Salaam yesterday at the official launch of Maendeleo Bank as a full-fledged commercial bank, the Prime Minister emphasised that understanding financial systems is essential for safeguarding personal finances and building economic resilience.

“Build simple and user-friendly systems for all financial users across the country,” Majaliwa urged. “We need to attract citizens who want to use these services but are hesitant due to a lack of clarity on how their money is handled.”

He encouraged Maendeleo Bank to collaborate with other financial institutions in strengthening Tanzania's financial ecosystem. He also underscored the importance of investing in modern Information and Communication Technology (ICT) systems that cater to both smartphone and basic feature phone users.

Referring to the bank’s newly launched mobile application, Majaliwa said, “Ensure that even people using basic feature phones can access the system without difficulties.”

The Prime Minister praised Tanzanians for their growing leadership in key economic sectors, applauding the bank’s management team for achieving the milestone. “I am proud of how Tanzanians have stepped up in managing institutions. It reflects their hard work and commitment to achieving strategic goals, such as leading Maendeleo Bank to attain full commercial status,” he said.

Lomnyaki Saitabau, Maendeleo Bank managing director described the launch as a defining moment in the bank’s journey.

“Today is a special and historic day for Maendeleo Bank PLC as we officially launch our operations as a full-fledged commercial bank,” Saitabau said. “This strategic step now allows us to serve all Tanzanians without geographical barriers.”

Founded in 2013, Maendeleo Bank was the first Tanzanian bank listed on the Enterprise Growth Market window of the Dar es Salaam Stock Exchange (DSE), providing a platform for young companies to raise capital.

Starting with a capital of 4.5b/-, the bank has grown steadily over the years, reaching 22.7bn/-by the end of 2024. It has posted profits in 10 out of its 11 years of operation, recording a post-tax profit of 3.7bn/- in 2024 alone.

The bank’s total assets have reached 151.2bn/-, with customer deposits standing at 104bn/- and a loan portfolio of 88.6bn/-, according to audited accounts for 2024.

Maendeleo Bank has also earned recognition for its performance, being named best listed company on the DSE in 2016 and 2018. It currently operates five branches in Dar es Salaam and works with more than 2,300 agents across 11 regions in both Mainland Tanzania and Zanzibar.

“These achievements are built on solid foundations of good governance, innovation, and strong customer support,” said Saitabau.

To chart its future path, the bank unveiled a new Strategic Plan for 2025–2030 under the theme “Talent and Technology Transformation.” The strategy emphasises employee development and the adoption of modern technology as core drivers of future growth.

“We believe true development begins with people,” said Saitabau. “That’s why we will prioritize human capital development and internal innovation.”

In line with this vision, Maendeleo Bank launched its Internet Banking platform in March 2025, marking a shift toward fully digital services.

Despite its new commercial status, the bank will maintain a strong focus on Micro, Small, and Medium Enterprises (MSMEs) and mid-sized corporates. Its lending strategy will prioritize clients with structured operations and manageable risk profiles.

With national expansion on the horizon, Maendeleo Bank aims to serve previously unbanked populations and contribute meaningfully to financial inclusion in Tanzania.