NMB Bank, Oryx Energies sign strategic MoU to accelerate LPG use in Tanzania

NMB Bank has signed a Memorandum of Understanding (MoU) with Oryx Energies Tanzania geared towards accelerating the use of Liquefied Petroleum Gas (LPG) in Tanzania.

Speaking during the signing ceremony held in Dar es Salaam yesterday, the NMB Bank Retail Banking Chief Filbert Mponzi said the strategic partnerships with Oryx Energies compliments the Government’s strategy for ensuring access to modern, clean and safe energy sources.

Mponzi said the move will help Tanzanians to reduce exposure to unhealthy wood-smoke and decreased pressure on the depletion of forest resources.

He noted that the MoU envisages the bank’s sustainability strategy and aligns with SDG 7 that addresses universal access to modern energy services for all by 2030.

“Our collaboration with Oryx Energies will increase the supply of LPG at discounted prices for our customers across the country. As a bank, sustainability of the environment is one of our top priorities and we believe this campaign will act as a pathway to enable people make a quick energy transition,” Mponzi said.

He noted that the bank’s customers across the country will now purchase complete LPG starter-packs at discounted prices of 150,000/- and 43,000/- for 15kg and 6kg respectively through the bank’s digital payment solutions.

Mponzi noted that the partnership with Oryx Energies also seeks to develop the entire LPG value chain through provision of cheap loans to LPG wholesalers, retailers and distributors across the country.

“As a bank, we will provide loans at low interest to people in the LPG value-chain to ensure that their businesses prosper. Our aim is to take center-stage in closing the gap of access to clean cooking solutions for unreached populations in Tanzania,” Mponzi said.

He noted that the bank during the 2013/2014 Financial Year set aside 2bn/- that will be used to accelerate the implementation of projects across the country that contribute to reducing carbon emissions.

“We earlier launched an ambitious one million tree planting campaign earlier this year as part of our efforts to reduce carbon emissions across the country and as we speak, the project is progressing well and all indicators show that we will surpass that target,” he added.

Earlier, the Oryx Energies Managing Director Benoit Araman said his company has been committed to development of Tanzania’s energy sector for the last 25 years.

“We are glad to sign this MoU with NMB Bank and we believe this new partnership will not only help to bridge the existing LPG but also ensure that people right at grassroots level have access to affordable LPG,” he said.

He noted his company presently commands the biggest LPG market share at the moment in Tanzania adding that the company has 57 distribution channels across the country.

“As a market leader, we are committed to provide affordable LPG to households across the country. I take this opportunity to thank the NMB Bank management for its consideration to partner with us in taking LPG agenda right at grassroots level,” he added.