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Mwanza Region’s contribution to the gross domestic product (GDP) has reached 4.9tri/- to become the second region with largest economy after Dar es Salaam, which grew by 9.9tri/-.
Mwanza, also the second biggest city after Dar es Salaam, with a population of 2.7 million, is the business hub of the northern circuit serving almost ten regions.
The Mwanza Regional Commissioner, Mr Magesa Mulongo, said the regional economy, when measured by GDP, was growing fast and could have been closer to Dar esSalaam, if company registration was to be decentralised. “The market is here and economy to drive businesses is (also) here,” Mr Mulongo said.
The RC’s call came when he addressed a seminar that gathered local government workers and councillors from the Lake Zone organised by CRDB Bank to educate them about its services.
Mr Mulongo said the regional economy is growing at a pleasing pace and the need for financial services is widely needed bear in mind that it serves other regional as well.
According to the central bank, Mwanza, a region rich in minerals and fisheries, and with a city growing rapidly, is poised to close its gap with leader Dares Salaam, as manufacturing sector is growing.
BoT has projected Mwanza economy to grow by 8.0 per cent in 2014 if the levels of investment and the regional bloc trade remain unchanged. In short to medium term, the region’s strong GDP growth rate relying much on its income from fishing, farm products and livestock products.
Realising the opportunity, CRDB Bank, starts a strong market drive not only to win private sector but also government businesses in Lake Zone.
The bank in the region has almost 40 branches and controls almost 80 per cent of the govern ment business-meaning local government accounts.
The Prime Minister’s Office Minister for Regional Administration and Local Government, Ms Hawa Ghasia, urged local authorities to take the competition among banks, to their advantages. “(Municipals) don’t only channel workers salaries but also borrow for the development projects.
This way you increase the municipal revenues through those projects,” she said. To improve the financial services being provided to the central and local government, the treasury Chief Accountant picked two banks to do the job in this year to end NMB monopoly.
The other is CRDB. On its part CRBD has assured civil servants of timely payment of their salaries at guaranteed date irrespective of any government delay.
The announcement comes at a time when the bank has been approved to provide financial services to the municipals, councils and government institutions in this year.
The CRDB Managing Director, Dr Charles Kimei, promised local government officials that they will be presented with detail of the agreement and access to for development projects.
CRDB Director of Corporate Banking Mr Philip Alfred told the gathering that municipals are a good lender as their rate of repayment is relatively commendable.
Endelea kuamini hivyo.