 BACKGROUNG |
The Tanzania Investment Bank (TIB) was established in November 1970 pursuant to Act No. 20 of 1970 of the United Republic of Tanzania. Under the 1994 amendment of the TIB act, the objectives of the bank are:
To undertake merchant banking activities;
To engage in banking business;
To make available short term, medium term and long term finance for economic development
To administer such special funds as may from time to time be placed at the disposal of the bank;
To provide technical assistance and advice in order to promote economic development; and
To undertake such other activities as may be necessary or advantageous for the furthering of the foreign objectives.
Throughout its thirty years of existence, TIB has been a household name in financing capital investments in the country.
Subscribers to the share capital of the bank are the Government of the United republic of Tanzania (99.098%), the National Bank of Commerce (0.676%), and the National Insurance Corporation of Tanzania Limited (0.226%).
In line with the developments in the financial sector during the 1990s, TIB had to re-define its mission. The bank's establishing act (TIB Act 1970) was amended in 1994.
The main focus of the amendment was the diversification of operations, which meant transforming TIB into a development -cum- merchant bank the bank's mandate was thus legally expanded.
| TIB MISSION STATEMENT |
The TIB's mission statement is as follows:
"To participate in the economic development of Tanzania by being leaders in development financing whilst providing specialised investment banking services on a commercial basis.
In doing so, the bank will continuously strive to achieve service excellence through a highly competent workforce and modern technology with the underlying objective of growing shareholder wealth"
| LENDING POLICIES |
The bank provides finance or facilities to agencies, entities or enterprises incorporated in Tanzania any of the following ways:
By making or participating in direct loans with its unimpaired paid up capital and with its reserves and undistributed surplus or with unimpaired special funds;
By making or participating in direct loans with funds raised by the bank through borrowing or otherwise acquired by the bank for inclusion in its ordinary capital resources;
By investment of funds referred to in paragraphs (i) and (ii) above in the equity of agencies, entities or enterprises;
By guaranteeing in whole or in part, loan made by others for economic development.
The bank is guided by sound banking principles and therefore finances only financially viable, economically sound and technically feasible projects. The projects must also be environmentally acceptable.
| SERVICES |
 Term loans |
Provision of term loans is the bank's core business.
TIB provides funding for the purpose of capital investments and the implementation of commercially viable projects in all major sectors of the economy. Term finance is offered in foreign and local currency for new projects, rehabilitation and expansion of existing projects for periods of up to eight years.
| Equity Investments |
TIB provides equity investments to projects with the objective of improving their capital structure and maximising return on investment.
| Short Term Loans and Working Capital |
The bank provides short-term loans for the funding of working capital and other short-term requirements for up to one year. The finance is available for procurement of raw materials, spare parts, balancing of equipment and vehicles etc, for periods of up to one year.
| Stock Brooking |
TIB, through is subsidiary company, Rasilimali Ltd, was among the pioneer dealers /stock brokers in the Dar es Salaam Stock Exchange (DSE).
Since the commencement of operations of the DSE in 1998, the bank has been active in the purchase and sale of stocks and shares on behalf of its clients.
Services provided include:
Buying and selling government securities, sale of other securities such as EADB Bonds in the secondary market
Provision of investment advisory services
Share listing.
| Trade Finance |
As a leading provider of term finance for over thirty years, many of the projects with which TIB has been associated have required international trade services.
These include the import of machinery and raw materials for manufacturing enterprises and access to international markets for agricultural and commodity export projects. Services offered include:
Pre-export finance
Post-import finance
Bill discounting
Letters of credit and guarantees
Click to enlarge (40 Ko)
The bank can also structure more complex trade finance arrangements through our relations with overseas financial institutions
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| Foreign Exchange Services |
TIB provides foreign exchange services in support of trade finance activities and for other legitimate purposes (i.e. Non-speculative). These services are available in all major currencies.
| Deposit Taking Services |
Tanzania Investment Bank provides a comprehensive range of deposit services, in both Tanzania Shillings and foreign currencies, at competitive rates of interest.
Foreign currency deposit services are available in United States Dollars, British Pounds, Deutschmarks, South African Rand and other major currencies.
The minimum balance requirement is TZS 100,000 or USD 500 or the equivalent in other foreign currencies.
The bank provides the following deposit taking services:
Instant calls account
Savings account
Fixed deposit
Notice account.
Interest rates are variable according to the size and term of the deposit
| TIB PERFORMANCE |
| TIB Business Environment |
It is encouraging to note that, during the period January-December 1999, the bank continued to make significant progress. Rationalisation of the operations of the bank continued by diversifying its sources of income and cutting down costs. As a result, the bank registered positive results for a third year running.
| Restructuring of the Operations of the Bank |
As reported during recent years, the Strategic Business Plan recommended the following:
Continuing with term financing and introducing new activities, which are: trade finance, foreign exchange dealing, deposit taking, treasury dealing and capital market operation.
Improving the TIB Information Technology System.
Rationalising the group structure to improve operational efficiency and facilitate eventual privatisation.
Changing the TIB organisation structure.
Implementation of some of the new financial services is on course. The TIB bureau de change and trade finance unit-commenced operations. The groundwork for establishing the activities of deposit taking and treasury dealing is at an advanced stage. The preparatory work for commencement of banking operations included the refurbishment of a banking hall, preparation of operational manuals and recruitment of requisite manpower. These will be completed during the first quarter of year 2000.
During the same period, the bank commenced the implementation of the Information Systems / Information Technology strategy. By December 31 1999, the installation of infrastructure and hardware for Local Area Network and banking software was at an advanced stage. Training on both hardware and software has been undertaken.
The bank has recommended to the Government the repeal of the TIB Act (1970) as amended in 1994. Subsequently, the bank will be registered as a company under the Companies ordinance (Cap 212). Among other reasons, this move is intended to facilitate the commercialisation of the bank.
During the period under review, the organisational structure was adopted. The new structure is intended to align the bank's manpower with the existing operations and increase efficiency in the provision of services.
| ORGANISATION AND MANPOWER DEVELOPMENT |
During the period ended December 31, 1999, the bank implemented a new organisational structure. In line with the recommendations of the Strategic Business Plan, the new structure constitutes four major divisions:
Development Banking
Investment Banking
Operations and Finance
Human Resources and Administration.
Training offered during this period focused on the new activities of trade finance, capital market operations, other banking services and IT based services. A total of 1,224.5 man-months were spent on training TIB staff.
During the same period a total of 9 members of staff were recruited in various capacities and two members of staff resigned from the services of the bank. As of December 1999, the staff position stood at 50 out of whom 75% are professionals in various disciplines.
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