FMO, in collaboration with NMB Plc., hosted a two-day Environmental and Social Risks Management Training for the bank staff and the board. The event took place at the NMB Training Academy and attracted different business units within the bank from Credit, Corporate Banking, Business Banking, Transactional Banking, Agribusiness and Legal Departments. The training focused on building knowledge and capacity around critical environmental, social risk management and capturing safer finance opportunities.
“As a Responsible Corporate Citizen NMB is committed to managing environmental and social risks which the bank might be exposed to by virtue of transactions and financing relationships that we have or is in the process of having with the customers,” says NMB Managing Director Ms. Ineke Bussemaker.
Ms. Bussemaker added that NMB remains committed to pursue sustainable lending business. Not only by excluding certain types of business activities, but even more by collaborating with clients that are exposed to large environmental and social impacts to improve their sustainable performance. Through our lending strategies, we deem prudent that our clients adequately comply with the required statutory environmental and social regulations as periodically stated through the National Environment Management Council (NEMC) and those prescribed by International Partners.
Linda Broekhuizen, CIO of FMO, said, “The current challenge for Tanzania is maintaining sustainable growth and effectively addressing social and environmental issues, such as poverty, the effects of climate change and deforestation. Also the recent developments around oil & gas will demand a proactive role from financiers to verify that the activities in this sector will meet high environmental and social standards to ensure minimal negative impact on the surrounding environment and communities. The financial sector can play an important role in the Tanzanian economy if it adopts sustainable approaches in risk management and lending policies that will result in financing projects that offer good economic, environmental, and social returns. For FMO, training a large group of staff of its valued partner NMB, is an important addition to its worldwide environmental and social initiatives."
The participants commented that the workshop reflected a proactive approach to risk management. "The workshop helped to focus on the relevant issues aimed at ensuring business continuity under diverse environmental and social risks, as well as building an effective risk management framework within our bank,” they added. At the end of the two-day workshop, participants re-affirmed their commitment to work more closely to enhance the environmental and social practices at NMB, to continue strengthening skills and competencies on the subject, and educate not only fellow staff but also clients.
For information about this training contact Bart Heinink, Environmental & Social Officer at FMO: b.heinink@fmo.nl.
About NMB Plc
National Microfinance Bank PLC (“NMB”) is Tanzania’s leading banking institution, both in customer based and branch network. With over 170 branches and over 600 ATMs, NMB is represented in more than 95% of Tanzania's districts. NMB serves individuals, micro- and small enterprises as well as larger businesses. NMB has a strong financial record, based on years of strong and stable performance. NMB is listed on the Dar Es Salaam stock exchange. NMB’s largest shareholder is its strategic partner Rabobank (34.9%), which has been invested in NMB since 2005.
About FMO
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
