SPEAKER of the National Assembly Dr Tulia Ackson has urged the public to use formal institutions to access various financial services, especially during this period when the Parliament is preparing better policies to oversee the financial services in the country.

Dr Tulia made the call here yesterday when speaking at the official launch of the branch of the People's Bank of Zanzibar (PBZ).

The launch ceremony of the branch, located at the Mafiati area of Mbeya city, took place earlier today and was led by Speaker Dr Tulia, accompanied by various guests including leaders from both the political party and government, religious leaders, representatives of the business community in the city, and officials from the bank, led by the Managing Director, Arafat Haji. The Minister of Health, Social Welfare, Elderly, Gender and Children Zanzibar, Ms Riziki Pembe Juma, represented the Minister of State (President's Office), Finance and Planning, Zanzibar Dr Saada Mkuya Salum.

She suggested the need for the public to use formal financial institutions to access various financial services, including savings and loans, to benefit from the advantages offered by the institutions, including financial education on the benefits of savings and responsible borrowing.

Dr Tulia said: "The importance of using formal financial institutions is significant, and the repayment process is well-organized, without exploitative interest rates, unlike loans provided by informal institutions, which are not regulated and charge high interest rates to exploit citizens.” 

“The informal loans, nowadays disbursed through mobile phones without regulation, often deceive citizens and cause significant inconvenience not only to borrowers but also to their close contacts, as they receive malicious messages that serve to degrade the borrowers," she said.

Dr Tulia also highlighted the collaboration between the Parliament and the government to ensure the financial sector in the country is governed by better policies that will attract citizens to use financial services in formal institutions. 

She emphasised the need to carefully consider the interest rates offered by formal institutions. Furthermore, she stated that the Parliament is working closely with the government to address the issue of informal loans and their disadvantages for the benefit of citizens. Dr Tulia also praised PBZ Bank for expanding its presence in the country, including in the city of Mbeya, stressing that its establishment in the region is a result of economic growth, quality infrastructure, and favourable investment policies that attract various stakeholders to the region. 

The Mbeya Urban MP called on PBZ Bank leaders to ensure that their services cater to all segments of the population based on age, gender, and personal economy, with priority given to helping youths through friendly loans that aim to enhance their economic status through their businesses and agriculture.

 Riziki Pembe Juma, Zanzibar Minister for Health, Social Welfare, Elderly, Gender and Children stated that the establishment of the bank branch in the region is a result of excellent collaboration between the Revolutionary Government of Zanzibar, which owns the bank’s 100 percent share, and the Government of the United Republic of Tanzania. 

She urged residents of the region to take advantage of the arrival of the bank branch as an opportunity to open up business and agricultural opportunities between the region and Zanzibar.

Arafat Haji, the bank’s managing director, said that the opening of the branch in Mbeya is part of the bank's strategy to expand into various regions of the country while fulfilling its fundamental duty of creating economic opportunities among citizens from all parts of the union.

"This branch will open more business opportunities for residents of this region and also create trade relationships between them and Zanzibar, by focusing on the available opportunities in these two parts including agriculture and trade. Our services are friendly to all groups, and I am confident that we will attract more customers. We welcome everyone to come and experience the difference," he said.

Following Dr Tulia's request, PBZ Bank pledged to offer ten motorcycles to support the efforts by Dr Tulia in helping youths in the region, particularly the ‘bodabodas’

Mbeya District Commissioner Benno Malisa stated that the increase in financial institutions in the region is a positive sign of economic growth and the presence of a favourable business and investment environment. He urged the bank to be part of driving the region’s development agenda by providing good services including commercial and agricultural loans.