Mwanga Hakika Microfinance Graduates in Commercial Banking

By Alex Nelson Malanga

Dar es Salaam. Mwanga Hakika Microfinance Bank Limited (MHB) has become a commercial bank, giving it a chance to expand the scope and type of services offered.

It comes after its registered capital rose to 18 billion shillings.

It was established almost two years ago as a result of the merger of EFC Tanzania Microfinance Bank, Hakika Microfinance Bank and Mwanga Community Bank.

It is now called Mwanga Hakika Bank.

The law requires a microfinance bank to have a minimum capital of 5 billion shillings while a commercial bank must have a minimum capital of 15 billion shillings.

“We are now able to provide much more loans than when we were operating as a microfinance bank,” the bank’s managing director, Mr. Jagjit Singh, said at an event to announce officially its transition from a microfinance bank to a commercial lender.

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The President of the National Assembly, Dr. Tulia Ackson, graced the event.

It can now avail up to 4.5 billion shillings in loans to a single borrower without seeking approval from the regulator.

The bank’s loan portfolio currently stands at 72 billion shillings. The total gross loan ratio of its non-performing loans (NPLs) is 5.49%.

Mr. Singh promised to give loans to entrepreneurs in the country.

He said the bank would also provide loans for agriculture, mining and trade, among others.

Visa cards, other services and rural expansion are also on the bank’s menu.

Currently, Mwanga Hakika Bank has seven branches, including two in Dar es Salaam, three in Kilimanjaro and one in Dodoma and Arusha.

“By expanding our reach, many more customers can take advantage of the services,” Singh said.

According to the Chairman of the Board of Mwanga Hakika Bank, Mr. Ridhiwani Mringo, the operations of the bank will be based on creativity, transparency and affordability.

It has 106 employees; total assets of 111 billion shillings and customer deposits of 71 billion shillings.

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