(Dar es Salaam) – DCB Commercial Bank has introduced the sale of preferential shares to raise over TZS 10.7 billion, a move aimed at enhancing its capital base and supporting economic opportunities for Tanzanians.
The bank’s initiative seeks to expand its current capital of TZS 15 billion and meet the regulatory requirements set by the Bank of Tanzania (BoT). The announcement was made at an official launch event held in Dar es Salaam on November 11, 2024.
Zawadia Nanyaro, Chairperson of DCB’s Board of Directors, explained that this step aligns with the bank’s five-year strategic plan to grow its capital to TZS 61 billion by 2028. This plan aims to enable the bank to strengthen its lending capacity and offer increased financial support to small and medium-sized enterprises (SMEs). The initiative is expected to yield economic benefits for shareholders and the wider Tanzanian community.
DCB’s five-year strategy focuses on five key areas:
- Increasing the bank’s capital from TZS 15 billion in 2024 to TZS 61 billion by 2028.
- Growing low-cost deposits through collaboration with major shareholders and customers.
- Expanding quality loan services provided with efficiency and expertise.
- Offering tailored loans to SMEs to fulfill the bank’s founding purpose of supporting small-scale entrepreneurs.
- Enhancing service delivery methods and introducing more digital banking products.
To facilitate this expansion, the bank is offering 97,646,913 preferential shares at a discounted price of TZS 110 per share, significantly lower than the market rate of TZS 160 per share.
Exaut Julius, Director of Market Supervision and Investigation at the Capital Markets and Securities Authority (CMSA), commended DCB for its professionalism and efficiency in securing CMSA approval for the share sale. He emphasized that the government, through CMSA, is committed to developing and regulating capital markets to ensure transparency and fairness for all participants.
DCB’s CEO, Sabasaba Moshingi, highlighted the bank’s recent profitability in the second and third quarters of the year, driven by its focus on digital banking services. Moshingi noted that these efforts have helped expand financial access across the country.
Key Details of the DCB Share Offering
| Aspect | Details |
|---|---|
| Total Shares Offered | 97,646,913 |
| Target Amount to Raise | TZS 10.74 billion |
| Price Per Share | TZS 110 (Market rate: TZS 160) |
| Capital Growth Goal (2024–2028) | From TZS 15 billion to TZS 61 billion |
| Focus Areas | SME loans, digital services, low-cost deposits |