Best bank: NMB Bank
NMB Bank is Euromoney’s best bank in Tanzania for 2024. Total assets grew by 19%, from $3.95 billion at the end of 2022 to $4.7 billion at the end of 2023. Net profit was also up 26% at $208.6 million. Both increases are the product of loan growth of 28% and a rise in the number of customer accounts – the bank opened 1.2 million new accounts in 2023 alone.
The bank issued its first sustainable bond in 2023, the NMB Jamii bond. The three-year TSh1 trillion ($386 million) deal was the first in the region dedicated to green and social funding. It was dual-tranche, with a TSh212 billion and a $73 million tranche.
In corporate responsibility, the bank invested TSh6 billion in education, health and climate-related initiatives. It continued its work integrating climate risks into its enterprise risk management framework and is in the last stages of finalising emissions baselines and setting decarbonization targets.
A key focus for the bank is building its digital and agency banking model. By the end of 2023, some 96% of transactions took place outside of branches. The bank now has over 28,000 agents, from under 19,000 in 2022, and has launched a digital campaign to raise awareness of its digital products, including digital micro-loans.
Best digital bank: NMB Bank
NMB Bank has continued to focus on digital advancement, introducing several new services over the awards period.
The new mobile banking app facilitates digital loans, bill payments, investments and insurance solutions, and has seen over one million downloads since its launch. The bank demonstrated high digital adoption with 96% of transactions taking place outside traditional branches and over 85% of clients onboarded digitally.
The bank has partnered with the government to implement the e-payment gateway for electronic revenue collection. Around 1,300 institutions are in the system, enabling government institutions to collect taxes through NMB branches and its digital platforms, significantly reducing revenue loss.
The bank has also enhanced its savings options. It launched NMB Kwetu for Tanzanians abroad, the Hekima Plan for pensioners and the Spend to Save programme for automatic savings. These services offer benefits such as life insurance, no monthly fees, flexible-term loans and automated savings.
Best bank for SMEs: CRDB Bank
CRDB Bank’s small and medium-sized enterprise loan portfolio grew by 34% in 2023, reaching $373 million while maintaining a non-performing loan ratio of below 5%. SME deposits grew by 23% over the awards period.
The bank introduced the Komboa Loan programme, which offers low-cost, unsecured short-term loans. It also collaborated with Silent Ocean to provide financing that covers freight costs, port charges and taxes for SME customers importing goods.
Best bank for ESG: NMB Bank
NMB Bank worked on east Africa’s largest sustainability bond last year, achieved greater energy efficiency in its operations and supported community-led environmental projects.
The three-year NMB Jamii Bond was the first and largest sustainability bond in east Africa and was the first dual-tranche bond in the region. The Tsh75 billion ($28.2 million) tranche was oversubscribed by 283%, while the $73 million tranche was 730 times oversubscribed.
The proceeds from the bond will finance projects focused on climate, social and environmental resilience, sustainable infrastructure and the efficient use of natural resources.
The bank reduced its electrical energy consumption by 14% and implemented LED lighting in all of its 175 branches and training centres. It also supported tree planting initiatives, resulting in 1.2 million trees being planted.
NMB Bank launched a project to support beekeeping groups. In November 2023, 500 beehives were distributed to selected groups in the Morogoro, Tabora and Njombe regions. This initiative also included monitoring and entrepreneurship training for the beekeepers.
Best bank for corporate responsibility: NBC Bank
NBC Bank focused on initiatives targeting sport, healthcare and banking access last year.
The bank sponsored the Tanzanian Premier League for an additional five years. It helped teams with individual and family health insurance, bus loans for travel and stadium upgrades.
Another initiative was the NBC Dodoma Marathon, which focused on improving maternal and child health and supporting women affected by cervical cancer. Run in collaboration with Ocean Road Hospital and the Benjamin Mkapa Foundation, this programme educated 55 midwives and assisted over 20,000 women.
NBC Bank expanded access to banking services across Tanzania by opening five additional service centres in semi-urban areas and installing seven remote ATMs.
