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Tanzania’s CRDB Bank plans to boost its retail business

Published

7 months ago

May 27, 2024

To spur the expansion of its retail business, which is predicted to be the next frontier for commercial banks in Africa in terms of income generation, Tanzania’s CRDB Bank has announced a new template for its branch operations.

The proposal, which is detailed in the annual report (2023), divides the branch network of Tanzania’s biggest lender by assets into two specialized divisions: Branch Sales and Business Performance and Branch Operations and Controls.

“In our relentless pursuit of customer satisfaction and operational excellence, we thoroughly reviewed our organisational structure. This revamp was designed to align more closely with the needs of our valued customers while driving performance to new heights,” the lender says.

“This strategic realignment ensures a sharper focus on customer-centricity and positions us to capitalise on growth opportunities with greater agility and efficiency.”

The lender is exploring several initiatives, including the branch reorganization, to support the expansion of its consumer business and attract new clients. Additional initiatives include expanding agency networks, digitizing financial transactions, and adding new branches.

Throughout the year, the listed Dar es Salaam Stock Exchange (DSE) added fifteen new branches nationwide and launched digitalized account opening platforms, such as self-account opening using the SimBanking app and CRDB Wakala.

As a result, the bank opened more than a million new accounts with customers and mobilized deposits totalling more than Tsh500 billion ($192.25 million).

“This bold initiative (account opening) not only extended our presence to previously untouched areas but also transformed mobile branches into enduring hubs of service and support. From the serene landscapes of Turiani to the bustling streets of Mafia, each new branch represents a beacon of opportunity and empowerment,” the lender says.

A new agency banking system, which CRDB also unveiled, aims to enable agents to carry out hitherto unattainable tasks including reversals and real-time income tracking. Furthermore, allowing agents to do business using cell phones sped up the onboarding process for both new customers and agents.

Through these efforts, the bank’s retail deposits increased from Tsh3.6 trillion ($1.38 billion) in 2022 to Tsh5.1 trillion ($1.96 billion) in 2023, a 41% increase.

At the same time, the number of new accounts established increased from 878,780 to 1.25 million, a 43% increase. In December 2023, the retail loan book increased by 20% to Tsh4.1 trillion ($1.57 billion).

“The 2023 financial year marked a remarkable success for our retail business, with significant achievements in key indicators across various segments, including retail deposits, loans and advances to customers. A key driver of this success was the streamlining of customer onboarding, which resulted in the growth of total retail banking income,” the lender added.

Global consulting firm McKinsey & Company projected in 2018 that the fastest-growing segment, the mass market, would represent the next frontier for bank expansion in Africa, accounting for 70% of banks’ retail business revenues by 2025.

For banks with significant operations throughout the area, including as Kenya’s Equity, KCB, NCBA, and Co-operative, the retail banking model has increased their non-funded incomes. The “high volume, low margin” businesses that the model centres around are aimed at the lower-income

Related Topics:Featured Tanzania Tanzania's CRDB Bank

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IMF, Egypt reach agreement for fourth review of Egypt’s $1.2 billion loan request

Published

2 days ago

December 26, 2024

Ifeoluwa Dada

Egypt and the International Monetary Fund (IMF) have reached a staff-level agreement over the fourth review of the Extended Fund Facility arrangement, which might lead to a $1.2 billion payout under the program.

In March, Egypt, struggling with rising inflation and cash shortages, consented to the $8 billion, 46-month facility. Its economic problems were made worse by a precipitous drop in Suez Canal revenue over the last year due to regional tensions.

Over the next two years, Egypt’s government has committed to raising its tax-to-revenue ratio by 2% of GDP, according to the IMF, emphasising removing exemptions rather than raising taxes.

According to a statement from the IMF, this would allow it to expand social expenditure to support vulnerable populations.

“While the authorities’ plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilization efforts,” the statement said.

According to the IMF statement, Egypt had also committed to maintaining its commitment to a flexible currency rate and to taking more urgent action to guarantee that the private sector became the primary driver of development.

The IMF’s executive board still has to accept the fourth review’s staff-level agreement.

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Libya’s eastern govt accepts petrol subsidy elimination

Published

2 days ago

December 26, 2024

Ifeoluwa Dada

In a recent statement, the eastern government of Libya claimed it had reached a consensus on a plan to eliminate gasoline subsidies and would draft a mechanism to carry out the accord.

Additional information on the idea was not released by the administration led by Osama Hamad, a challenger to the internationally acknowledged Tripoli-based government.

However, it is uncertain if Hamad’s government would be able to carry out the plan in the divided nation.

According to the Global Petrol Prices online tracker, a litre of gasoline costs just 0.150 Libyan dinars ($0.03) in OPEC member Libya, making it the second-cheapest in the world.

Following an uprising against former ruler Muammar Gaddafi in 2011, smuggling networks have thrived in the ensuing political unrest and armed fighting. In 2014, conflicting eastern and western governments separated the nation.

A World Bank analysis estimates that the annual value of fuel smuggling from Libya is at least $5 billion.

In a meeting with Mari Barrasi, the deputy governor of the Central Bank of Libya (CBL), located in Tripoli, and four members of the bank’s board of directors, Hamad in Benghazi supported the idea of removing subsidies.

The CBL’s Benghazi branch offices served as the venue for the conference.

The eastern parliament appointed Hamad in 2023 to succeed Abdulhamid Dbeibah, who had been put in position in 2021 under a U.N.-backed procedure that the parliament said had lost its legitimacy.

Dbeibah, who is located in Tripoli, stated in January that he will conduct a public poll on the topic of eliminating gasoline subsidies, but he hasn’t done anything about it since.

According to CBL figures, gasoline subsidies cost 12.8 billion Libyan dinars between January and November of this year. 4.8 Libyan dinars to $1 is the official exchange rate.