THE government has committed to work with the country’s banking sector enhance its efficiency in delivering services to the public.

Mohamed Mchengerwa, Minister of State in the President's Office (Regional Administration and Local Governments), made the pledge here yesterday when speaking at the 8th Mwalimu Commercial Bank (MCB)’ Annual General Meeting.

Mchengerwa emphasized the government's desire for substantial growth of the country’s financial sector, saying:“It’s the true partner in the country’s socio-economic development.”

In a speech, which read on his behalf by Iringa Municipality Mayor, Ibrahim Ngwada noted that the strength of banks like MCB would significantly contribute to the nation's economic development and individual prosperity.

MCB has defied the odds in a challenging financial landscape, reporting significant progress and a remarkable post-tax profit for the financial year ending 31 December 2023.

This achievement comes despite liquidity issues and other sector-wide challenges, showcasing MCB’s resilience and strategic acumen.

In 2023, the global economy showed signs of recovery, even as volatile energy and food markets, weak business growth, and stringent financial conditions posed obstacles.

The Bank of Tanzania's economic report for the quarter ending September 2023 highlighted these hurdles, yet MCB emerged stronger.

Francis Ramadhani, bank’s chairman of the Board of Directors reported that MCB recorded a post-tax profit of 11m/- , a significant turnaround from a post-tax loss of 331m/- in 2022. This milestone was underpinned by a 3percent increase in total revenue.

Interest income surged by 20percent, driven by strategic investments in long-term loans to short-term borrowers, while non-interest income grew by 3-percent.

"We must indeed take pride in this new direction in managing our bank; these are no small achievements, they are significant steps towards greater profitability in the future to enable dividend pay-outs," Ramadhani emphasized.

However, the liquidity crunch in 2023 limited the bank’s ability to issue loans, resulting in a 2percent decrease in the loan book. In response, MCB has developed strategies to address this challenge in the upcoming period.

Efforts to maintain a quality loan portfolio paid off, with the year closing with a non-performing loan rate below 1 percent. Moreover, the customer deposit book grew by 1percent despite liquidity constraints.

 MCB concluded the year with two service branches in Dar es Salaam, supported by eight regional offices in Morogoro, Mwanza, Mbeya, Dodoma, Arusha, Kigoma, Rukwa, and Mtwara.

Beyond these physical branches, customers accessed services through alternative channels such as Umoja Switch and Visa ATMs, as well as mobile banking.

Ramadhani’s evaluation also touched on the domestic banking sector's economic environment, saying the national income grew by 5.3% in the fourth quarter of 2023, driven by robust performance in agriculture, financial services, tourism, and mining.

Among these, the fastest-growing sectors were financial services and insurance, information and communication, and mining.

Inflation remained within national targets and regional standards, averaging 3.1percent in the quarter ending December 2023, compared to 4.8percent in the same quarter of 2022.

This reduction was largely due to stabilized prices for food and non-food items such as oil and energy. The Central Bank maintained a policy of reducing expenditure to avoid inflationary pressures while protecting economic growth and financial sector stability.

MCB customer base grew from 58,378 to 60,008 in 2023, reflecting MCB's ongoing efforts to enhance service delivery through modern means. Looking ahead, MCB aims to accelerate business growth to meet the targets set in the 2021-2025 strategic plans, focusing on strengthening operational systems.

MCB was registered in 2012 in Tanzania under the Companies Act No. 212 of 2002 as a limited liability company.

It transformed into MCB in 2025 when it was listed on the Dar es Salaam Stock Exchange under the Enterprise Growth Market (EGM) segment.

A year later, it obtained a license to provide financial services under the Banking and Financial Institutions Act 2006.