Economic growth - The banking sector in East Africa has been challenged to assume a role of an investment catalyst to achieve development and economic growth through the available loan facilities. This was said in Arusha on Wednesday by the Minister for East African Co-operation, Mr Samuel Sitta at the Rabobank annual global trade and commodity finance hosted by the National Microfinance Bank PLC (NMB). The consortium led by Rabobank of the Netherlands holds 49 per cent shares in NMB and a stake of about 35 per cent stake. "Banks need to put in place favourable conditions for provision of capital to industries, agriculture, tourism, construction, energy and mining and all the other key sectors for future growth," he said in a speech availed to the 'Daily News' in Dar es Salaam on Wednesday.

Mr Sitta asked governments at the EAC to work with the banking sector so as to facilitate fast tracking of the integration and economic growth.

He said the government appreciates what is being done so far but is also looking forward to seeing Rabobank in partnership with NMB playing an active role in promoting trade and commodity financing in the East African region to support business growth.

"As the EAC countries continue to strengthen the foundations for socio-economic integration and development, a key ingredient for EAC to develop its agriculture-industrial entrepreneurship, there have to be in place efficient financial linkages to the rural population of the member states," he said.

For example, he said, the government sees NMB as an integral component towards facilitation of the emerging business opportunities in the East African region.

He hailed the bank with the widest network of more than 140 branches across the country for supporting the government's efforts towards the promotion of agriculture.

"We are very proud that Rabobank, one of the leading banks in the world has seen it fit to hold its annual conference in Tanzania, in partnership with NMB," said Mr Mark Wiessing, the NMB Chief Executive Officer.

He said the decision to hold their meeting in the country is an evidence of the significant progress of NMB in establishing itself as a credible partner for leading importers and exporters of agricultural like oil and fertilizers.

He said the bank will continue to support small scale farmers and co-operative organizations, including seasonal crop and warehouse receipt finance and are also moving up the value chain, especially in food and agriculture-related businesses.

Tanzania Daily News/27/10/2011