1. Transforming Public Sector Banks National Microfinance Bank

2. Why Bother Development stops at the major cities Commercial Banks focus on urban areas and more formal sectors, leaving the “underserved” Critical to the financial network of the country Everyone uses a national banking system Government Banks Private Sector

3. Misconceptions Commercial loans are necessary Expensive centralized bank operating systems are necessary Foreign training is necessary The Poor don't save The Poor don't repay loans

4. Enabling Environment Business Law Labor Laws Courts Government Support

5. Political Perseverance to maintain business principles

6. Market Critical Mass of Demand Opportunity for Key Products Remittances Savings Credit

7. Labor Availability Adaptability Mobility

8. Business Infrastructure Management Suitable Technology Branch Network

9. External Support World Bank DAI Central Bank of Tanzania PSRC Ministry of Finance

10. Banks Comparative Performance as of December 31 2002

13. BRANCHES LENDING

15. Staff Training Man-Days of Training Conducted 2001: 3,013 Man-days 2002: 5,506 Man-days Attendance 2001: 763 individuals 2002: 981 individuals

18. INFORMATION TECHNOLOGY 70 branches automated Core Banking System Implemented by year-end 2003 Centralized accounts payable Increased centralization of branch accounting

19. Tony Singleton tony_singleton@dai.com