A STONE TO CORNER
TBY talks to Dana Botha, Managing Director of BancABC, on staying ahead of the game, the importance of export diversification, and the cornerstones of financial stability.
BIOGRAPHY
Dana Botha began his banking career in 1989, serving in a number of senior positions, from Group Finance to Corporate and Business Banking. He worked as Managing Director of Absa Bank Asia Limited in Hong Kong and China, and as part of Barclays Africa, focusing on Namibia, Mozambique, Zimbabwe, Tanzania, and Angola. He joined BancABC in 2009, heading the Zambia Office, and then working as Group Head of Corporate Banking. He holds an MBL, Hons B. Compt, and B. Com degree in accounting.What is the significance of your Tanzanian operations for your overall African footprint?
BancABC operates in six sub-Saharan African countries. In Tanzania itself, we are a relatively small in terms of the banking playing field; however, we have the strategic intent to grow our business quite significantly in the foreseeable future. At present, we have five branches, though our focus is not necessarily to develop a brick-and-mortar setup. It has become almost prohibitively expensive for a commercial bank to roll out greenfield brick-and-mortar operations; therefore, we are turning to alternative channels, rolling out agency banking concepts and mobile banking applications, and strengthening a loan distribution network of about 100 loan centers out in the country, with nine zonal offices. Owing to this platform, and other innovations, we have been able to successfully compete in the market, banking around 45,000 retail consumer customers based on our distribution network, which we intend to roll out and grow.
How are these strategies tailored to the Tanzanian market in particular?
It is critical to be ahead of the game. In the MNO space, for example, records show that for the first time total turnover in the mobile banking space has exceeded that of the formal banking sector. This means partnerships with MNOs are critical. Some have already partnered with larger banks, meaning smaller players have to think differently. In that space, we have excelled through our alternative channels, where we have developed a prepaid card that links into a mobile banking application, and this allows customers to do wallet-to-bank and bank-to-wallet transactions.
In line with this strategy, how are you working to strengthen the BancABC brand in Tanzania?
As a relatively small player in the market, our approach to obtaining brand recognition has to be carefully thought out. We have to focus on specifics, which we have been successful doing over the last year. In the past year, we have been successful in the digital marketing space, where we have worked with Google, Facebook, and Instagram to garner between 9 and 12 million hits and views.
What are the challenges of banking in emerging markets, in particular Tanzania?
Many make the mistake of imposing a large corporation attitude on an emerging market. While it is important to consider the governance and compliance agenda, if this is pushed too strongly in emerging markets, it can derail any possibility of significant growth in these markets. There are a number of large international banks in Tanzania, Mozambique, and Zambia that have not seen any significant growth or have in fact regressed. Our way of approaching emerging markets is to remain nimble and react quickly, especially when it comes to decision making. The commodity crisis in the last few years has significantly impacted the Sub-Saharan African market. What is more, it had the opportunity to take advantage of the regional conditions to supply to the East African market.
How successful has the Bank of Tanzania (BOT) been in regulating this environment?
I have a great deal of respect for the central bank. The governor has always been a pragmatic ally of the financial services sector, and we enjoy close ties and strong collaboration. BOT has worked well with other banks in terms of bringing down interest rates. The one-year rate has come down from levels of 16-17% to 9%. There is also the drive to develop, along with the World Bank, the mortgage market in the country, an area that can be a cornerstone for financial stability, with the potential to unlock equity from real estate to develop the economy.
A STONE TO CORNER
TABLE OF CONTENTS
Guest Speaker
Hon. Patricia Scotland, Secretary General, Commonwealth of Nations
TBY talks to Hon. Patricia Scotland, Secretary General of the Commonwealth of Nations, on the advantages of being a member of the Commonwealth, the need to celebrate diversity, and Tanzania's war against corruption.
read articleGuest Speaker
Libérat Mfumukeko, Secretary-General, East African Community (EAC)
TBY talks to Libérat Mfumukeko, Secretary-General of the East African Community (EAC), on Tanzania's importance to the EAC, the major achievements of regional integration, and obstacles ahead of a monetary union.
read articleInterview
Raymond P. Mbilinyi, Executive Secretary , Tanzania National Business Council (TNBC)
TBY talks to Raymond P. Mbilinyi, Executive Secretary of Tanzania National Business Council (TNBC), on its work to support the private sector in the country, tackling challenges in the economy, and clamping down on corruption.
read articleReview: Banking
The Quest for Depth
If Tanzania is to meet its 2025 vision of attaining middle-income status, it will need to corral its bank-centric financial and capital markets for greater depth by extending participation and rendering credit more accessible to SMEs, women, and the young to spur economic growth.
read articleInterview
Dr. Baghayo A. Saqware, Commissioner , Insurance, Tanzania Insurance Regulatory Authority (TIRA)
TBY talks to Dr. Baghayo A. Saqware, Commissioner of Insurance, Tanzania Insurance Regulatory Authority (TIRA), on achieving universal healthcare coverage, the brilliance of microinsurance, and how to partner with public and private entities to increase the industry's penetration.
read articleReview
Legal Thunder
With the stepping down of Minister of Energy and Minerals Sospeter Muhongo in May 2017 over transparency issues and the introduction of three new laws that give the government the right to renegotiate or revoke existing mining and oil and gas rights, private players in the country are unsure of what future lies ahead. On the other hand, project-specific developments bode well for a sector in need of a breakthrough.
read articleInterview
Kapuulya Musomba, Managing Director, Tanzania Petroleum Development Company (TPDC)
TBY talks to Kapuulya Musomba, Acting Managing Director of Tanzania Petroleum Development Company (TPDC), on the planned expansion of the Mtwara-Dar es Salaam natural gas pipeline, entering northern industrial hubs, and empowering nascent industries.
read articleInterview
Marc Den Hartog, Managing Director, Shell/BG Tanzania
TBY talks to Marc Den Hartog, Managing Director of Shell/BG Tanzania, on the critical need for economies of scale, the importance of developing LNG for export, and why renewables must be taken into account in any long-term plan.
read articleInterview
Hon. Charles Mwijage, Minister, Industry, Trade and Investment
TBY talks to Hon. Charles Mwijage, Minister of Industry, Trade and Investment, on how to reach middle-income status, employing the private sector toward this end, and what sets the country apart from the rest of East Africa.
read articleFocus: Helium
Discoveries of Magna-tude
Despite being the second most common element in the universe, helium is in short supply on earth. With global reserves of the gas steadily dwindling, and demand steadily increasing, the discovery of a whopping 1.53 billion cbm of helium in underground chambers in Tanzania could not have come at a better moment.
read articleInterview
Gilliard W. Ngewe, Director General, Surface and Marine Transport Regulatory Agency (SUMATRA)
TBY talks to Gilliard W. Ngewe, Director General of Surface and Marine Transport Regulatory Agency (SUMATRA), on transportation budget allocation and cross-sector dialog and partnerships.
read articleInterview
Jared H. Zerbe, CEO, Tanzania International Container Terminal Services Limited (TICTS)
TBY talks to Jared H. Zerbe, CEO of Tanzania International Container Terminal Services Limited (TICTS), on regional trade flows and Tanzania's potential to take a leading role in orchestrating cargo movement.
read articleFocus: Tanzania Strategic Cities Project (TSCP)
East Africa’s “Geneva”
If Rome wasn't built in a day, it is not surprising that Tanzania's project to revamp eight of its largest cities is entering its eighth year of implementation. A release of further funds from the World Bank has given the project a new lease of life.
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Lost in the Maize
Agriculture accounts for 30% of Tanzania's GDP, and the sector has experienced above-average output in recent years compared to the rest of the African continent. However, the sector's development is held back by poor rural farming practices and general infrastructure bottlenecks.
read articleInterview
Fred Kafeero, Tanzania Representative, Food and Agriculture Organization (FAO)
TBY talks to Fred Kafeero, Tanzania Representative of the Food and Agriculture Organization (FAO), on the organization's long-term support for Tanzania's development, recent initiatives in agriculture, and financing.
read articleFocus: 2020 Irrigation Target
Reap What You Sow
In 2006, the Tanzanian Ministry of Water and Irrigation set a target for Tanzania's agriculture sector: to irrigate 1 million ha of land by 2020. More than 10 years on and moving ever closer to the deadline, this target has not yet been met, though the first seeds are being sown.
read articleFocus: Southern Circuit Tourism
Hidden Gems
Tourism is frequently described as the jewel in Tanzania's economic crown. In 2016 alone, the industry contributed over USD2 billion in revenues. However, for at least three years, the government has expressed concern that tourism is not well distributed across the country.
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