NMB, Mantrac to ease equipment financing for miners, contractors

Media/news company

Mwananchi Communications Limited

Dar es Salaam. NMB Bank Plc and Mantrac Tanzania Limited have signed a partnership to improve access to financing for machinery and equipment used in mining, construction, infrastructure, energy and manufacturing.

The agreement combines NMB's financing capacity and nationwide network of more than 250 branches with Mantrac Tanzania's expertise in supplying and servicing Caterpillar equipment, including mining and construction machinery and power generators.

The memorandum of understanding was signed in Dar es Salaam by NMB Chief of Retail Banking, Mr Filbert Mponzi, and Mantrac Business Planning and Operations Director for the East Africa Region, Mr Levite Dongmo.

Under the arrangement, eligible customers will be able to finance equipment purchases with an initial contribution of between 20 and 25 percent. NMB will structure repayment schedules around customers' cash flows, business cycles and project requirements, subject to its lending policies and approval processes.

Mr Mponzi said the high upfront cost of heavy machinery remains a major obstacle for businesses with viable projects and growth potential.

"When we finance machinery, we are not financing equipment alone. We are enabling roads, mines, industries, jobs and Tanzania's capacity to build its economic future," he said.

He said that NMB disburses more than Sh200 billion in loans every month to entrepreneurs and small and medium-sized enterprises, noting that the partnership would strengthen the bank's ability to meet the specialised capital needs of miners and contractors.

Under the agreement, NMB will conduct credit assessments and provide financing, while Mantrac will supply the equipment, technical support, after-sales services and manufacturer-approved maintenance.

The financed equipment will carry warranties of between 24 and 36 months, depending on the type of machinery, project requirements and contractual terms.

Mr Mponzi said the arrangement ensures customers receive not only financing but also reliable equipment and technical support.

"When machinery operates reliably, projects are completed on time, costs are controlled and the customer's capacity to repay is protected," he said.

Mr Dongmo said the partnership would improve access to quality equipment and professional support for businesses seeking to expand production.

"Combining NMB's financing capacity with Mantrac's machinery, generators and technical expertise will unlock investment and accelerate growth across some of Tanzania's most important economic sectors," he said.