Formalizing bodaboda business is a fundamental initiative that NMB has recently undertaken in its quest to helping youth engage and participate actively in building economic growth.
Bodaboda that mainly provide a passenger taxi like-service and sometimes hired to move goods have become an important source of job opportunities and income to most unemployed youth in the country.
It is thus through the NMB Mastaboda loan that would witness more than 2 million bodaboda riders in the country, who are still unbankable, getting access to various financial services for investing and expanding their businesses.
The NMB Mastaboda loan launched last week, where 5bn/- was set aside for lending, is termed as a significant initiative for which bodaboda business will be formalized and make riders reap immense banking services from NMB bank.
The bank's move to formalize bodaboda business will not only help youth generate more incomes but also create more jobs to other jobless youth in the country.
The NMB Managing Director Ms Ruth Zaipuna said the launch of the Mastaboda loan was the response to government request made in 2019 at the launch of Mastaboda QR.
She pledged that the bank would be ready to raise the amount if demand from bodaboda riders increases.
"The 5bn/- has been set for the first year and if more bodaboda riders take advantage of this Mastaboda loan, the amount would be increased to meet the demand," she stressed.
Ms Zaipuna said NMB bank had just launched the Mastaboda loan in Dar es Salaam and would be extended to other regions to make sure that all bodaboda riders take advantage of the 5bn/- set for lending.
More than 300 bodaboda riders participated during the launch event held in Dar es Salaam recently.
For a bodaboda rider to qualify for Mastaboda loan, has to be an account holder of NMB; must hold the National Identification card; banking with NMB for three consecutive months; and a member of bodaboda riders’ associations.
On his part, NMB Bank Chief of Retail Banking, Mr Filbert Mponzi said the bank had trained and equipped over 5,000 bodaboda riders and now is targeting to reach more than 75,000 bodaboda riders countrywide in one year in order to enhance efficiency in their business.
The Minister of the State in the Prime Minister’s Office (Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled), Ms Jenista Mhagama said during the event that the loan initiative was complimenting government efforts to empower youth and take active part in building the country’s economy.
“I commend NMB for tireless efforts to find best ways of lending and empowering those groups in the society who are sidelined by other commercial lenders,” she said, adding this is what it means for a bank which is close to the people.
She assured government support in the implementation of bodaboda business through formalization of bodaboda associations, assurance of financial supports and capacity building to youth who engage or willing to engage in the business.
“It is my wish to see your business growing from owning bodaboda to possessing motor vehicles through which you can generate more income,” she said.
Ms Mhagama told them however to observe financial discipline and hardwork as the key secretes in boosting and expanding bodaboda business to the next level.
The minister said the government was on belief that when financial services become more inclusive, more people will be able to access loans which are key in boosting and investing in various businesses.
“The government will continue to collaborate with other stakeholders to address problems that bodaboda riders face so that their business grows to benefit the country’s economy.
I urge bodaboda riders in other regions to make effective use of the NMB trainings in order to benefit from the huge amount of money set by the bank for lending them,” she noted.
Equally, she urged NMB to push the initiative to other parts of the country so as to reach more youth engaged in bodaboda business.