Incentives Compendium 20171031 - Final With Cover Final+

CRDB WORKERS SACCOS LIMITED
FIVE YEARS STRATEGIC BUSINESS PLAN
[2014 – 2018]
DECEMBER 2013
Strategic Business Plan [2nd Draft] – CRDB Workers SACCOS Limited ©2013
Strategic Business Plan [2nd Draft] – CRDB Workers SACCOS Limited ©2013 Page | i
Chairman’s Note
In developing a comprehensive five years Strategic Business Plan for CRDB Workers SACCOS Limited –
from 2014 to 2018, the process needed support and inputs from a diverse of stakeholders. Because
of the importance and scope of the exercise, it was necessary to engage an independent person to
facilitate the process – coordinating and compiling ideas and comments from various stakeholders.
The process saw a thorough review and improvement of strategic areas of the SACCOS – its mission,
vision and cultural values.
It should be noted that in the course of developing this Strategy, it demanded remarkable time and
resourcefulness of members of the Board and Supervisory Committee and the Management and Staff
of the SACCOS. It is their unrivaled commitment that this document has been completed. Therefore,
in a special way, I would like to express my sincere appreciation to them. In the same gratitude, I
would like to extent my gratitude to all ordinary members for their immense and generous
contributions towards the script.
Moreover, I extend my special thanks to the Management of CRDB Bank Group for granting their
specious time to carry interviews with the Strategy Team. Here, I would like to acknowledge
invaluable inputs from the Deputy Managing Director – Shared Services, Mrs. Esther Kitoka. Her
inputs will greatly pave a way for close working relationships between CRDB Workers SACCOS Limited
and the Management of CRDB Bank Group.
Lastly, but not least, my special thanks go to some members of the SACCOS, who took their precious
time to respond to a survey that was meant to gather firsthand information on the SACCOS.
With this note, I request support and collaboration from all the stakeholders; especially members of
the SACCOS and CRDB Bank Group to assist the Board and Management of CRDB Workers SACCOS to
implement these strategies in order to achieve the desired goals and objectives.
--------------------------------------------
JOHN F. KOMBA
ACTING CHAIRMAN,
CRDB WORKERS SACCOS LIMITED
Strategic Business Plan [2nd Draft] – CRDB Workers SACCOS Limited ©2013 Page | ii
Executive Summary
CRDB Workers Savings and Credit Cooperative Society Limited (CRDB Workers SACCOS) is a
cooperative society with a discretion membership of employees of CRDB Bank Plc and its subsidiaries
– and its own employees. The SACCOS started operations since 1986, with 166 founding members.
However, as at the end of December 2013, the SACCOS had membership of 1,412 – which is 68% of
the total employees of CRDB Bank Plc and its subsidiaries (the Bank). From year 2014, the SACCOS is
commencing its five years strategic journey, with an ultimate goal of recruiting 95% of all employees
of the Bank – thus, projecting 3,420 members by 2018. Between 2010 and 2013, CRDB Workers
SACCOS has exhibited impressive growth in almost all other business areas – shares, savings and loan
portfolio. Notably, shares and savings grew from TZS 46.5 million and TZS 1.36 billion, to TZS 172.62
million and TZS 3.37 billion, respectively. Similarly, over the same period the loan portfolio increased
from TZS 1.67 billion to TZS 4.22 billion; and subsequently, profit increased modestly – from TZS
56.87 million in 2010 to TZS 178.8 million in 2013.
However, despite these achievements, the SACCOS has not done very well on its products and
services – still offering basic generics cooperative products – shares, savings and loans. This has not
been inline with continuously varying financial needs and wants of its members and employees of the
Bank. As a result, the SACCOS has remarkably been losing its market share and the potential market
to the competition where the supply and innovations for financial services is increasingly growing.
Therefore, in order to improve further its business to curb the competition, for the next five years the
SACCOS is embarking on the strategic planning and execution process – that will see review and
introduction of new products and services and improved delivery processes. Its Five Years Strategy is
focused on: increasing membership; enhancing governance systems to oversee and lead the growth
of the SACCOS; rehabilitating its ICT and operational systems; improving its brand and image, and
products and services; enhancing and developing its workforce; and ultimately generating enough
profit to cover its operations and bringing healthy returns to its members.
Henceforth, due to the expected business transformations over the next five years, the loan portfolio
is expected to grow from TZS 5.5 billion to TZS 20.44 billion; contributed by the increase in
membership from 1,756 to 3,560 in 2018, and introduction of new and review of existing loan
products – that will attract more borrowing from members and the potential market. Nonetheless,
despite the increase of the volume of the loan portfolio, its quality is projected to remain below a
threshold of a portfolio at risk (PAR) of 5% and non-performing loans (NPL) of 2% throughout the
Strategic Business Plan [2nd Draft] – CRDB Workers SACCOS Limited ©2013 Page | iii
period. On the other hand, savings will also grow magnificently at an average annual rate of 35%,
from TZS 4.51 billion in 2014 to TZS 17.32 billion in 2018; and deposits, that will be introduced in year
2015, is projected to reach TZS 1.2 billion by 2018.
Subsequently, interest income will as well increase from TZS 670 million to TZS 2.3 billion – this is
obviously attributed by the growth of the loan portfolio. However, as per the projections, the SACCOS
is expecting to finance its loan portfolio mostly through its savings and deposits from members –
henceforth expecting limited borrowing from external sources.
Growth of these key areas will phenomenally influence growth of other areas, i.e. institutional capital
of the SACCOS and dividends payout; and administrative costs, especially staff expenses.
Strategic Business Plan [2nd Draft] – CRDB Workers SACCOS Limited ©2013 Page | iv
Table of Contents
Chairman’s Note ....................................................................................................................................................ii

Executive Summary ..............................................................................................................................................iii
1. Introduction .................................................................................................................................................... 1
Background ..................................................................................................................................................................................................................... 1
Activities, Products and Services ............................................................................................................................................................................. 2
Ownership and Governance ........................................................................................................................................................................................ 3
2. The Approach and Structure of the Strategic Plan .................................................................................. 4
The Approach in developing the Strategic Plan ..................................................................................................................................................... 4
Structure of the Strategic Plan ................................................................................................................................................................................. 5
3. Strategic Review of CRDB Workers SACCOS ............................................................................................. 7
Performance Overview ................................................................................................................................................................................................ 7
Mission Statement ...................................................................................................................................................................................................... 10
Current Vision Statement ........................................................................................................................................................................................... 11
Values Statements ........................................................................................................................................................................................................ 11
SWOC Analysis .............................................................................................................................................................................................................. 12
4. Environmental and Market Analysis........................................................................................................... 18
Environmental Analysis...............................................................................................................................................................................................18
Market & Competition Analysis ................................................................................................................................................................................. 21
5. The Future of CRDB Workers SACCOS...................................................................................................... 26
Mission Statement ..................................................................................................................................................................................................... 26
Vision Statement ......................................................................................................................................................................................................... 27
New Cultural Values.................................................................................................................................................................................................... 27
6. Strategic Objectives, Goals and Activities ............................................................................................... 29
Key Strategic Areas................................................................................................................................................................................................... 29
Strategic Objectives .................................................................................................................................................................................................. 29
Key Goals, Targets and Key Activities .................................................................................................................................................................... 30
7. Performance Measures, Implementation and Monitoring ...................................................................... 38
Projected Financial Performance........................................................................................................................................................................... 38
Key Performance Indicators ..................................................................................................................................................................................... 41
Implementation and Monitoring ................................................................................................................................................................................ 41
Appendices .......................................................................................................................................................... 44
Strategic Business Plan [2nd Draft] – CRDB Workers SACCOS Limited ©2013 Page | v
COMPREHENSIVE FINANCIAL FORECAST .................................................................................................................................................................45
Strategic Business Plan [2nd Draft] – CRDB Workers SACCOS Limited ©2013 Page | vi
1. Introduction
1.1. Background
CRDB Workers SACCOS (Saving and Credit Cooperative Society) Ltd was registered in December 1986
with Registration no 5410, with a common bond of “being an employee of CRDB Bank Limited”; and
with a total of 166 founding members. As the CRDB Bank has changed form and expanded through its
subsidiaries – the common bond is now “employee of CRDB Bank PLC and its subsidiaries” to be
referred as the “Bank”. Since then, the SACCOS has grown to 1,412 members – 68% of the number of
staff of the Bank, as the end of December 2013. However, the objective of CRDB Workers SACCOS Ltd
is to mobilize all employees of the Bank to become members of the SACCOS and instilling adequate
saving and borrowing culture for their economic development.
Based on previous reviews, the mission of CRDB Workers SACCOS Limited was “to provide effective
value-added microfinance services, in promoting adequacy savings, wise borrowing and prudent
utilization of funds to attain sustainable development and financial freedom among members”. The
vision of the SACCOS was “to become the preferred, unique leading SACCOS model, providing
competitive and reliable financial services to members”. However based on the development of this
strategy, the mission and vision of the SACCOS have been reviewed to reflect its new strategic focus
for the next five years.
Furthermore, the SACCOS has been operating within the following cultural values - Customer Centric
(C), Unity and Solidarity (U), Professional Integrity (P), Value based (V), Accountability (A) and
Prudence (P); famously known as CUP-VAP. These values were meant to shape the ways of conduct
of the SACCOS when dealing with its stakeholders. Likewise, these cultural values have been
reviewed inline with the current Strategic Plan.
Strategic Business Plan [2nd Draft] – CRDB Workers SACCOS Limited ©2013 Page | 1
1.2. Activities, Products and Services
Key activities of the SACCOS are:
 Mobilizing members from a pool of employees of CRDB Bank, and its subsidiaries to join the
SACCOS;
 Mobilizing members to buy more shares and make savings in order to build an adequate
internal fund;
 Proving loans to members to meet their various financial needs;
 Designing other products and services to address financial needs of members – especially
deposits, insurance, etc;
 Overseeing and management of the institutional funds in order to create value to members
of the SACCOS; etc
The SACCOS is offering the following financial products:
(a) Loan Products – these are further subdivided into two major categories:
i. Emergency loan – that is repayable within six (6) months, for emergent financial
needs; and with a limit amount of TZS 1,000,000/=, and regardless of the value of
savings of the borrower;
ii. Development loan – that carters for longer-term financial needs of members – and
with a longer repayment period of up to three (3) years – that are further in two
categories:
 A loan twice as much of borrower’s savings but with a limit of TZS 30 million –
for members whose savings are higher than TZS 10 million;
 A loan twice as much of the borrower’s savings, with a limit of TZS 20 million –
for members whose savings are less than TZS 10 million
(b) Savings product – this is a prerequisite for members who want to borrow from the SACCOS.
There is no interest paid on members’ savings – hence limiting higher savings in excess of the
prerequisite amount for the loan limits.
(c) Shares – This is a mandatory condition to be a member. One must buy at least 10 shares at
TZS 10,000/= each, i.e. TZS 100,000/=, in order to become an effective member. There are no
limits for the amount and value of shares for each members – except that one member
cannot hold more than 20% of the total share value of the SACCOS;
(d) Deposit products – Currently, there are no deposit products in CRDB Workers SACCOS Limited.
The SACCOS should design appropriate deposit products in order to attract deposits from
members – especially by offering higher interest rates.
1.3. Governance and Management Structure
CRDB Workers SACCOS Limited is owned by individual members, who own at least ten (10) shares in
the SACCOS. Members, through their Annual General Meeting (AGM), form the highest authority and
decision-making body of the SACCOS. However, through AGMs, members elect the Board of Directors
to oversee the business of the SACCOS – and the Supervisory Committee to inspect the work of the
Board of Directors. Furthermore, these responsibilities of the Board are escalated to the
Management team – and other members of staff, through Strategic and Operational Plans, and
operating policies, to run daily operations of the SACCOS.
Because of the nature of operations of CRDB Workers SACCOS Limited – having members in almost
all branches of CRDB Bank – the SACCOS introduced the concept of branch representation. Thus in
most branches the SACCOS operates through Branch Representatives – who are supposed to mobilize
and sensitize members, market products and services, disseminate information and knowledge
regarding the operations of the SACCOS – and conveying feedback from members to the Head Office
of the SACCOS for decision-making.
However, in delivering services to its members, the SACCOS has centralized systems based at the
Head Office: management of loans - assessment, approval, disbursement and recovery processes;
awareness campaigns, mobilization and recruitment of new members; marketing and selling of
products and services; and management of inquiries from members and non-member staff.
Furthermore, these processes are not well harmonized and aligned for smooth execution – that leads
to ineffectiveness and inefficiency in serving its target market.
2. The Approach and Structure of the
Strategic Plan
2.1. The Approach in developing the Strategic Plan
Because of the importance of the exercise to develop the first Strategic Business Plan of CRDB
Workers SACCOS, the Board and Management of CRDB Workers SACCOS engaged an independent
facilitator to coordinate the planning process. The role of the facilitator was to provide guidance in
the process, collecting and putting together inputs from various stakeholders and finally developing
the final copy of the Strategic Business Plan. For a better understanding of the operations of the
SACCOS, the starting point of the facilitator was to review its business and testing the level of
satisfaction of members and getting opinion from non-members. Therefore, the facilitator reviewed
products and services of the SACCOS, its delivery methodologies, its strengths and weaknesses, and
opportunities and challenges. Thereafter, the facilitation started with the development of a set of key
steps and activities in crafting the Strategic Business Plan, as shown in table 1 below.
Table 1 A Set of Activities in Developing the Strategic Business Plan of the SACCOS
S/N Key Activity Responsible
A thorough review of the products, processes, SWOC for a better Management, Board of Directors, Facilitator
1
understanding of CRDB Workers SACCOS;
Board of Directors, Facilitator
Carrying out strategic dialogues with the Board of Directors in order to grasp
2
the strategic focus and the envisioned future of CRDB Workers SACCOS
3 Developing a Work Plan and a consensus approach on the exercise Board of Directors, Facilitator
Carrying out an independent survey to assess the level of satisfaction from Facilitator
4 members and collecting independent opinion from non-members regarding
CRDB Workers SACCOS
5 Conducting interviews with key stakeholders to the business of the SACCOS Facilitator
6 Developing the first draft of the Strategic Business Plan Facilitator, Management, Board of Directors
Conducting Stakeholders Workshop for validation of the Strategic Business Facilitator, Management, Board of
7
Plan and producing a second draft Directors, some ordinary Members
Presenting the second draft to Members Meeting for deliberation and Board of Directors, Facilitator
8
approval
Evaluation of the reviews and development of the Final Copy of the Strategic Facilitator, Management, Board of Directors
8
Business Plan
Therefore, the overall process has engaged diversity of stakeholders to the SACCOS – members and
non-members; members of staff and management; the Board and Supervisory Committee; and the
Management of CRDB Bank Plc – and its subsidiaries. The interviews and discussions basically focused
on three categories of stakeholders: the management of CRDB Bank Plc – targeting the MD, DMD-ss,
Director of Credit, Director of Human Resources and the General Manager for CRDB Microfinance
Services Company Limited; and other outside stakeholders – the two major pension funds – PPF and
NSSF, and the regulator. The attention of interviews and discussions with key people of the
management of CRDB Bank Plc was to explore on working relationships between the SACCOS and the
employer – getting insights from key management personnel in order to craft new approaches and
relationships between the two, for the next five years.
On the other hand, the center of interviews with pension funds (PPF and NSSF) was to grasp the
modality of the wholesale loans, under their respective “SACCOS Schemes”, granted to their
members’ SACCO societies. While for the regulator it was to check with key legal issues and
development programs that are expected to shape the business of Savings and Credit Cooperative
Societies.
2.2. Structure of the Strategic Plan
The Strategic Business Plan of CRDB Workers SACCOS has been structured into the following three
key areas as shown in figure 1 below.
Figure 1 Three Major Areas of the Strategic Business Plan
• Review of its current strategies

Assessing the current
• Assessing its mission •Chapter 3
strategic position of the
• Assessing its values •Chapter 4
SACCOS
• Assessing its competitive advantages
• Setting its Strategic Objectives

Deciding on How the
• Setting its Goals
SACCOS is Going to Get to •Chapter 6
• Deciding on Actions
the strategic future
• Deciding and aligning resources
Deciding on the desired

• The desired vision
future of the SACCOS •Chapter 5,
• Key performance indicators (KPIs)
and how to measure its •Chapter 7
• Performance Monitoring & targets
progress towards there
Chapters three (3) and four (4) of the Strategic Business Plan, explore the current strategic position of
the SACCOS. These two foundational chapters are assessing the current products and services of
CRDB Workers SACCOS, and effectiveness of its operational systems in serving its members;
evaluating performance of its current strategies to fulfill and achieve its mission, vision; usability of its
corporate cultural values; appraising its strengths and weaknesses in harnessing the existing
opportunities in the market, while counteracting the challenges (SWOC analysis). Furthermore, the
chapters are analyzing: the external environment of the SACCOS (political, economic, social and
technological environment) to further ascertain key business interfaces and how the SACCOS should
address them; and related challenges; and the source and impact of competition to its business.
Chapter five (5) sets where the SACCOS envisions to go in the next five years – the mission, vision and
values it wants to reflect to its customers and the society; and Chapter seven (7) indicates the ways of
measuring its progress along the way in reaching its destination. On the other hand, Chapter six (6)
identifies the means – initiatives and resources – in terms of strategic objectives and goals, activities
and periodic targets to assist CRDB Workers SACCOS to achieve its five years’ vision.
Therefore, in summary this document has been divided into three main areas: (i) what is the current
position of the SACCOS in terms of performance of its current strategies, strengths and weaknesses of
its products and services, systems and priorities; (ii) where it wants to go or to become in the next
five years – in terms of a new mission, vision and cultural values it wants to reflect to the society; and
(iii) how it is planning to reach there – the objectives and goals, initiatives and resources.
These areas are well explained in details in subsequent chapters of this document.
3. Strategic Review of CRDB Workers
SACCOS
3.1. Performance Overview
3.1.1. Evaluation of Previous Strategic Business Plan
The SACCOS has had no opportunity to plan for a period beyond one year. Its planning has been
focusing on its annual businesses – and mostly with no annual operational plans, rather with only
annual budgets with specific activities. Therefore, despite the fact that there has been some strategic
issues to be tackled over a longer period of time, there has never been a strategic framework to plan
and enforce implementation for concrete results. Thus, in a way, it has been difficult for the SACCOS
to achieve bigger goals and objectives for transforming its outlook and performance. Therefore,
because of the pressing need to redesign its image and brand, into a modern and a customer
responsive institution, the Board has earmarked year 2014 to develop its first five years strategic
business plan. This will allow the Board and Management of the SACCOS to develop a sense of
strategic outlook to help them see the business of the SACCOS beyond a year – and hence able to
systematical transform this institution.
3.1.2. Current Performance
As noted earlier, performance of CRDB Workers SACCOS, from 2011 to 2013 (as projected by
December) has been remarkably outstanding. Table 2 below summarizes this performance – for three
consecutive years, from 2011. Membership – as the determinant of growth, has been growing at an
impressive rate, however the SACCOS has been unable to cover all members of staff of CRDB Bank Plc
– only achieving 68% of the entire staff team of the employer. Notably between 2011 and 2013, the
loan portfolio has more than doubled – from TZS 1.91 billion to TZS 5.22 billion; and henceforth
almost doubling the financial income from TZS 248 million to TZS 464 million. However, with these
outstanding results, the quality of the loan portfolio was constantly sustained below 5% of PAR.
Furthermore, from table 2, the management of the SACCOS mobilized considerable value of savings
to finance the growth of the loan portfolio, although at a declining coverage of 93%, 84% and 64% for
2011, 2012 and 2013, respectively. Therefore, from this trend, it’s important the management and
the Board of Directors to put in more efforts to mobilize adequate savings and deposits for increasing
the level of coverage – for at least 95% of the loan portfolio.
Table 2 Performance of CRDB Workers SACCOS for 2012 and 2013

st
Performance for Performance for Expected Performance (as at 31
Performance Indicator
2011 2012 Dec., 2013)
Membership 929 1085 1412
Total Staff of CRDB Bank Group 1653 1898 2063
Percentage of Members to total Staff 56% 57% 68%
Deposits 0 0 0
Savings (TZS Billion) 1.77 2.23 3.37
Shares (TZS Million) 35.9 66.52 172.62
Outstanding loan portfolio (TZS Billion) 1.91 2.66 5.22
Quality of the outstanding loan portfolio
≤5% ≤5% ≤5%
(PAR in %)
Financial Income (TZS Million) 247.84 331.14 463.53
3.1.3. Products and services
Over years now, like other Savings and Credit Cooperative Societies in Tanzania, CRDB Workers’
SACCOS has been offering traditional products to its members – shares, savings, deposits and loans.
However, over the past two years, some of these products have undergone some slight reviews in
the urge to address the changing financial needs of members and the general environment in the
financial market. For example, the SACCOS introduced two varieties of loan products – an emergency
loan to carter for emergent financial needs and a development loan for other purposes. However, as
per the quick survey conducted in August to September 2013 for getting feedback from members and
observations from non-members of the SACCOS, it was clear that these products and services need
improvements to further match the existing needs of members and general community of staff. The
survey reveals that the existing products need to be polished – in terms of segmentation according to
needs and enhanced features; and develop new ones to address un-served financial needs of
members and attracting more members. It was noted that, while it is in the best interest of the
SACCOS to have its members consume a whole set of its products and services for profitable
operations, most members apart from buying shares and making normal monthly savings
contributions, are borrowing from somewhere else. The reasons from not borrowing from the
SACCOS ranges from “high interest rates” to “lack of information regarding the products and
services”, especially for those who have been in employment for less than two years.
Therefore, going forward the SACCOS needs to review its products and services in order to address
specific financial needs for various segments of its members. This will improve its earning capacity –
and hence increased benefits to its members and modernizing its operations.
3.1.4. Operational Effectiveness
3.1.4.1. Staffing and Support of the Branch Representatives
CRDB Workers SACCOS has a total of six members of staff – the Manager, the Accountant, and Four
Credit Officers – as shown in the figure below. There has been a feeling whether this number is
optimum to serve about 1,000 members, who are scattered all over Tanzania – in more than 76
branches of CRDB Bank Plc. The whole team of staff is based at the Head Office, in Dar es Salaam.
This team is responsible for the overall running of the SACCOS – handling of members routine
inquiries, processing loan applications and preparing payment vouchers for disbursements,
mobilization and recruitment of new staff, preparation and follow on deductions, updating members’
records in their ledger cards and passbooks, entering members’ information into the system, etc.
Through a brief survey conducted, there are some members who are of views that the SACCOS has an
optimum number of staff – only that it lacks proper operational systems. Thus, that in case SACCOS
deploys and leverages on use of ICT platforms existing in the market, there will be no need to
increase a number of staff. Nonetheless, some are of views that, the number need to be increased in
order to enable the SACCOS to reach out to more members in all branches and mobilizing more
members who are lacking information regarding the SACCOS and its products and services.
Apart from the management, other members of staff and the Board – all based in Dar es Salaam, the
SACCOS works through the concept of representatives – some members based in upcountry branches
act as representatives of the SACCOS. Branch representatives are meant to act as contact persons
between the SACCOS and its members – at a branch level. However, there are no specific terms of
reference to set a platform for their operations, in order to measure and remunerate their
performances.
3.1.4.2. Communication and ICT Platforms
Currently, there are no standard communication platforms between the SACCOS and its members.
For example, the SACCOS receives applications for loans or membership, or otherwise, from its
members – for those who are based in Dar es Salaam and nearby regions, can afford their
applications to reach the SACCOS immediately; but for those from distant branches – especially in
remote regions, communication is not smooth and somehow disrupting flow of services. Therefore,
communication channels between members and the SACCOS is currently not streamlined – mostly
members are unofficially using platforms of the employer to communicate with the SACCOS, i.e. EMS,
courier services, internet and intranet systems, etc. There is a need for the SACCOS to have a
communication policy between its Head Office and its members – especially those who are located in
upcountry branches. Through a proposed support framework by the employer – the SACCOS should
clearly stipulate and request the employer to ‘officially’ use its communication platforms and
channels to serve its members – who are as well employees of the Bank.
Although CRDB Bank Plc, and its subsidiaries, is at the highest level of automation, CRDB Workers
SACCOS is still conducting its operations manually. Its core functions – management of the loan
portfolio, transacting for members’ deposits, savings and shares are done manually. Although there
are some initiatives to automate core functions, in the next five years, the SACCOS is focusing on
automating some other functions like finance and accounting, HR, members’ correspondences,
applications and inquiries.
3.1.4.3. Strategic Support from the Employer
Although currently, the SACCOS is getting some support from CRDB Bank Plc – in terms of discounted
loans; ICT platforms; and management of deductions for loans, savings, deposits and shares, there is
no agreement on such support and hence giving the SACCOS the rights to access and use such
support. Furthermore, there is an opportunity for the Bank to assume farther obligations in ensuring
the SACCOS is performing and delivering its best in serving members – and hence improving the
welfare of staff. Therefore, going forward, the SACCO, in liaison with the Management of CRDB Bank
Plc will identify areas of support and define the standards and approach of accessing and using such
support in order to better its services to members – and hence welfare of employees of the Bank.
3.2. Mission Statement

“To provide effective value-added microfinance services, in promoting adequacy savings, wise
borrowing and prudently utilization of funds to attain sustainable development and financial freedom
among members.”
Therefore, the core reasons for the existence of CRDB Workers SACCOS are:
(i) Promoting savings from its members – to provide convenient saving/deposit avenues for
members to build their own personal resources through their SACCOS; and henceforth
mobilizing its own internal fund, as a remarkable cheap source of financial resources;
(ii) Encouraging and providing conducive environment to its members to borrow, but
inculcating the culture of borrowing wisely, i.e. borrowing for productive purposes;
(iii) Prudent utilization of funds – to ensure the Board and Management safeguards the funds
of the SACCOS for the benefits of its members;
(iv) Ultimately, the mission of the SACCOS is to ensure its members are prospering
economically and achieving financial freedom;
The Board and Management has been striving to achieve these broad areas of the mission, through
its annual business plans; and it therefore from this year, the Board is embarking on the strategic
roadmap to enable CRDB Workers SACCOS envisions and plans over a long horizon of 5 years. In
subsequent sections, as they develop Strategic Objectives of the SACCOS, the Board will highlight
some areas of improvements on the mission for a clear strategic focus.
3.3. Vision Statement

To become the preferred, unique leading SACCOS model, providing competitive and reliable financial
services to members.
This is the statement of what CRDB Workers SACCOS is striving to become. Going through the
statement, the SACCOS wants to:
(i) Become an institution of choice by its members;

(ii) Become an modern and unique institution for other SACCOS to learn from in the industry;
(iii) Providing competitive and reliable financial services to members – as compared to other
providers
Therefore, through its annual business plans, its products and services, and its processes, the SACCOS
has been wanting to reflect this image to its stakeholders in that context. However, there has never
been a conduit and framework for systematic work in achieving the envisioned image. It is another
reason then, that the Board wanted to embark on strategic planning – in order to pave a strategic
way for the CRDB Workers SACCOS to become what it wants to become – in a specific period of 5
years. Similarly, the vision of the SACCOS will be improved in order to reflect its horizon of five years.
3.4. Values Statements

The Board and Management passed the guiding principles of the operations of the SACCOS, dubbed
and easily recalled as “CUP-VAP” (as detailed in table 2 below). These values are meant to be
experienced by all stakeholders in their interface with the SACCOS.
Table 3 Values Statements and their implications to the business
Values Business Implications
Customer Centric (C)

Unity and Solidarity (U)
Professional Integrity (P) The values had no “documented” descriptions and specific implications to the business of
Value-based (V) the SACCOS
Accountability (A)
Prudence (P)
In subsequent chapters these values will be enhance to reflect where CRDB SACCOS wants to go. The new
cultural factors will be integrated in daily conduct of staff, management and the Board in interface with all
categories of stakeholders, to ensure excellent customer experience.
3.5. SWOC Analysis

Table 3 below, provides an analysis of the strengths and weaknesses of the SACCOS in relation to the
existing opportunities and challenges in the market – and their implications to the business of the
SACCOS.
Table 4 SWOC Analysis, Business Implications and Strategic Focus
Implications to the Business
SWOC Attributes or Operations of the Strategic Focus
SACCOS
 Quick services to
customers – as it’s easy
 To continue leveraging on
and quick to assess loan
payroll platforms – widen a
applications and disburse
STRENGHTS
A salary-based product menu to members

loans to customers;
SACCOS and hence increasing
 Easy to manage loans
earning capacity of the
(deductions) through the
SACCOS;
existing payroll systems of
the employer;
Being part of strong  Credibility of CRDB  This will enable the SACCOS
brand of CRDB Bank Workers SACCOS in the to attract cheap resources
Plc market; from the market to grow its
business
Learned and  As the SACCOS grows, the
committed leaders  Ability to make informed Board and Management
(skilled, competent, decisions to safeguard the will need to explore and
SACCOS
experienced and interest of the SACCOS; learn on governance,
committed members  Instituting appropriate strategic planning and
of the Board, systems to manage affairs management, risk
Supervisory of the SACCOS management, etc in order
Committee and  Potential management the to continue reflecting
Management) resources of the professionalism in service
delivery;
 Providing a robust conduit
of communication
between the management
and members of the
 Constituting a “Service
SACCOS (information
Level Agreement” between
sharing, loan applications,
CRDB Bank Plc and CRDB
Operating within etc) through GroupWise,
Workers SACCOS on areas
systems of CRDB Intranet, internet
of support – and agreeing
Bank Plc accessibility;
on standards of services
 Ability to make payments
and support the employer
to members through their
will provide to the SACCOS
staff accounts and using
the accounting systems of
the Bank – hence less
operating costs;
 Increasing credibility to
members and non-
members;
 The SACCOS should
Impressive trend of  Increasing credibility to
continue to make steady
financial lenders and other
profit in order to keep this
performance strategic partners for
credibility to stakeholders
establishing working
relationship with the
SACCOS
 Inability of recovery in  To explore further on types
WEAKNES
case the guaranteed loan and values of securities

Inadequate is defaulted; members can offer on their
guarantee  Inability to measure the loans;
SES
framework and available capacity of the  Looking for possibilities of

systems amongst guarantor’s requesting the Employer to
members on loan savings/deposits to cover facilitate recovery through
disbursements the guaranteed loans – pension funds – when
hence the SACCOS employment of a member
assuming the risks; ceases
SACCOS
Lack of legal capacity  Increasing cases of the
of the SACCOS to SACCOS to lose the  The SACCOS should find an
access the outstanding loan portfolio alternative reliable type of
pensionable fund – hence a financial loss to security to cover loans
(pledged as security) the SACCOS; given to its members;
to settle the  The SACCOS should closely
outstanding loan on work with the legal
grounds of department of CRDB Bank
termination of Plc on appropriate
contract or contracting to facilitate
retirement or recovery on pensionable
resignation of the funds that members pledge
member from his/her as securities
employment
 Lack of internal controls  The SACCOS should
on operations of the automate most of its
SACCOS – prone to losses operations – especially the
and inefficiencies; management of the loan
 Challenges to the portfolio;
Absence of effective
Management in serving  The SACCOS should review
use of ICT systems
members; its accounting system to
(use of manual
 Loss of credibility to some ensure all the transactions
systems) and
members as some are accurately accounted
inadequacy of the
information are subjected for;
reliable accounting
to human errors;  The Board, apart from
systems
COASCO inspections, should
liaise with the Management
of CRDB Bank Plc to access
some services like internal
audit, risk assessment, etc
 Failing to perfect these
documents on properties  The SACCOS should
Lack of legal capacity
pledges as securities; establish close working
to manage legal
 Failing to use these relationship with CRDB
documents
securities as reliable Bank Plc on perfecting
(mortgage, title
securities instead of these documents to stand
deeds, chattel
“pension funds” that it has as reliable securities for
mortgaged, etc)
never been able to loans granted to members
recover from
Little support from  Lack of mentorship to  The Board should put a
the Management of leaders and management clear objective to bridge
SACCOS
CRDB Bank Plc of the SACCOS – for this gap so that the SACCOS
(Inadequate instituting professionalism works for the betterment of
members from CRDB in delivery of its services the employees of CRDB
management team – to members; Bank Plc – and the Group.
MD, DMDs,  Absence of a liaison
Directors, Managers platform for the support
and Supervisors) required from CRDB Bank
Plc
A reliable customer  Potential to increase

 The SACCOS should focus
base – of a total membership of the
on recruiting 100% of all
employees of the SACCOS
employees of CRDB Bank
Bank and its
Group – at any given time
subsidiaries in
Tanzania
Availability of low-  Borrowing avenues for continue to explore cheaper
OPPORTUNITIES
cost resources for on- growing its portfolio at sources funds;

lending (CRDB, lower costs of funds  However, the focus should
MFSCL, SELF, PPF, be to grow and use its
NSSF, LAPF, PSPF, internal funds before it
GEPF, OIKO, etc devotes on borrowing
Employer’s decision  This has improved the  The SACCOS should be

to improve terms on borrowing ratio to some strategic and aggressive to
mortgage finance members of the SACCOS take advantages of such
loans to staff – and hence giving them opportunities – otherwise,
extending repayment more borrowing room – other providers of financial
period to 20 y ears; ultimately increased loan services are grabbing them
portfolio of the SACCOS
Employer’s decision  This has given room to the  The SACCOS should plan to
to barn commercial SACCOS for possibility of commence commercial
loans to staff. granting loans to its members;
business/commercial
loans to its members who  Only that it needs to put in
would have accessed the place all the necessary
same from the employer arrangements;
SACCOS
 If this portfolio performs
well, the Bank might
consider the SACCOS to
manage its previously barn
portfolio of commercial
loans to staff;
 Commercial loans should be
adequately secured and
securities perfected;
 The Bank, through the
Department of Credit, can
assist the SACCOS to build
the necessary capacity to
manage business loans to
its members
Conflicting interest in  This is limiting the SACCOS
accessing loans from from accessing cheaper
 The SACCOS need to
the external markets loans from these
bargain on the way forward
that are cheap institutions;
with the subsidiary on the
sources. It has been a  And hence limiting the
agreed approach or to be
challenge for the possibility of offering
able to access loans at
SACCOS to get loans remarkably bigger loans to
lower interest rates;
from pension funds – its members;
CHALLENGES
like PPF and NSSF  Strengthening working

because of this relationships between
decision to conflict CRDB Workers SACCOS
with the mission of Limited and CRDB
CRDB Microfinance, a Microfinance Services
subsidiary of CRDB Company Limited
Bank Plc
Conflicting products  Posing competition on  The SACCOS, in close liaison
offered by CRDB financing avenues to the with the Management of
Bank Plc to its SACCOS; CRDB Bank Plc, should chat
employees. Typically,  Bad reflection of the out on the approach
the Bank is offering image of the SACCOS to whereby the offering some
loans, e.g. staff members and non- credit products to
unsecured personal members (potential employees of the Bank
loans, which charges members) – as most of (members to the SACCOS)
lower interest rate them are failing to find would be a value-addition
value of the SACCOS collaboration between the
whereby CRDB Bank Plc is two;
SACCOS
offering similar loans to its  Strengthening capacity of
employees (who are the SACCOS to manage
members to the SACCOS) other loans given by the
Bank to its employees;
 The SACCOS should review
its products and services to
be able to compete in the
market
Increased  Posing competition on  The SACCOS should conduct
competition from financing avenues to the a thorough survey to
members’ informal SACCOS; establish the
social funds and  This is where most competitiveness of its
other providers of members are accessing products and services in
financial services business commercial loans order to establish some
areas of improvement to
attract this demand lost to
other markets;
consider innovative
products and services – for
example to start thinking
exploring on Islamic
Banking
4. Environmental and Market Analysis
4.1. Environmental Analysis
For the context of the SACCOS, whose membership is from employees of the Company, the
environment of the SACCOS should focus on the stability of the business of the employer. Therefore,
the major analysis of the environment of CRDB Workers SACCOS will largely dwell on assessing the
stability of the business and the working relationship with CRDB Bank Plc. It is obvious the SACCOS
will need a tranquil general environment, outside CRDB Bank Group, but will not be the first
determinant for the success of its operations.
4.1.1. Political Analysis
Therefore, the political environment of the SACCOS would largely be the stability of the business of
the CRDB Bank Plc. With a general assessment of the growth trend of the Bank over the last five
years, one can firmly project that CRDB Bank Plc will still be in operations over another next five years
– and may be growing stronger. However, here the assessment includes the working relationship
between the Bank and the SACCOS. The relationship has been perceived to be good, although there
has never been a charter to clearly define what entails in this relationship – what values should the
SACCOS command to employees of the Bank and what support should the SACCOS get from the
Bank. It is expected as well that the Bank will not barn operations of the SACCOS – and that its
policies will always favour its operations.
On the bigger picture of the general environment, Tanzania is politically stable, like it has been over
the last five years. Therefore, it is projected to remain stable over the next five years. There are key
policies and strategies implemented by the Government that are directly favouring the growth and
development of the modern financial cooperatives in the country. Typical ones are the Rural Financial
Services Strategy (RFSS), the National Financial Inclusion Strategy, the formation of Cooperative
Commission and the expected review of the National Microfinance Policy. All these strategies and
policies do earmark SACCOS as the right vehicles to reach and serve a mass of population – though
they all recognize some challenges to be addressed.
4.1.2. Economic Analysis
Like the political assessment, the economic environment of CRDB Workers SACCOS starts with the
business welfare of CRDB Bank Plc. Thus, we project a stable economy (business) of the Bank – for
the next five years, like it has been over the past period. Moreover, over the last five years, from
2007 to 2012, the Bank has grown remarkably – for example, an increase of branch outlets of 111%
from 44 to 93, an expansion of ATM network of 245% from 71 to 245, and growth of the number of
staff 65% from 1,153 to 1898, over the same period. Therefore, over the next five years, the Bank is
projected to continue growing – even at a higher rate. This will have positive implications to the
business of the SACCOS – in terms of increased membership, and hence a need for more
improvements on service delivery systems.
Generally, we expect the economy of Tanzania will growth – as there are much new prospects and
indicators – emerging economies in gas, mining, farming and construction industry. However, as the
government focuses on building robust systems that will include and serve the financially-
marginalized groups in the community, this might create further competition to the SACCOS as more
institutions offering diversity of financial services, will start to emerge in the market. Thus, the
SACCOS should expect increase in competition over the next five years – especially from other
providers of financial services (commercial banks, other community-based SACCOS, micro-credit
companies and MFIs). It should therefore work on improving its products and delivery methodologies
in order to provide unrivaled services to its members. Furthermore, as the Tanzanian economy
grows, more employees (members to the SACCOS) will effectively engage themselves in real
entrepreneurship ventures – that will need financing from financial institutions and others – like
SACCOS, and the like. Therefore, CRDB Workers SACCOS, should project a boom in demand for such
financial needs.
Furthermore, because of the expected industry growth and consumer spending over the next five
years – interest rates, for both borrowing and savings, will remarkably increase. Therefore, in order
for the SACCOS to be able to access least expensive resources – savings and deposits – to build its
loan portfolio, apart from reviewing and designing attractive products, it should be able to pay
adequate interest rates on savings and deposit accounts. Therefore, interest on lending to members
will as well increase gradually to reflect this rise in the cost of funds. This will be the outlook of the
SACCOS in order to avoid borrowing from Banks – and related financial institutions, which will further
swell the cost of funds.
4.1.3. Social Analysis
The employee base of the Bank is expected to rise from 2,392 in year 2014 to ……..in 2018 – whereby
it is projected 95%, i.e……, will be members of the SACCOS. Furthermore, apart from increase in
number, the demographics of the employee population of the Bank (as the potential market of the
SACCOS) is vastly changing – more young employees are coming in which lowers the overall average
age of this population. This translates into a changing lifestyle of SACCOS members as well – putting
emphasis on “classy and stylish lifestyle” – living in good apartments, driving nice cars, nice mobile
phones and gadgets, etc. This presents a vast financing avenue, although if not well monitored, might
lead to multi-borrowing and hence potential default cases to the SACCOS. However, the SACCOS
should encourage its members to initiate other non-employment income generating activities and
hence develop appropriate financial products to match this new demand. Moreover, as the
Tanzania’s economy is growing very fast – more banks and related institutions will be coming in, and
henceforth expecting higher labor mobility and turnover will eventually go up before it stabilizes
thereafter. Therefore, in the next five years, especially towards the end of this period, the SACCOS
will experience higher members’ dropouts due to these changes. The SACCOS should start to institute
mechanisms for recovering loans from resigning member employees to continue repaying their loans
– instead of demanding immediate liquidation that might result to defaults.
4.1.4. Technology Analysis
Not only in delivery of financial services, but in almost all economic sectors, over the past ten years
technological developments have been remarkable and have equally commanded huge growth in
these sectors. However, the financial sector is one of a few economic areas that have experienced a
sharp positive impact of technology – on products and services, delivery methodologies and
management of core functions for providers of financial services. The impact of all these is the
increased efficiency and quality of services, reduced network expansion costs, increased outreach
into new areas, new products and services, etc. In the less span of next five years, more advanced
technologies in the financial industry are foreseen to continue emerging. Therefore, for CRDB
Workers SACCOS to be able to offer services that match the needs of its members and hence able to
compete with other providers, it needs to explore and invest in robust ICT platforms, for example the
use of mobile and smart phones, internet, etc for members to access their accounts with the SACCOS.
Specifically, for fast and convenient services to its members the SACCOS should immediately explore
platforms like Internet Banking, SimBanking and M-Pesa (and other telecom-led mobile money
platforms) to expedite services to its members – rather than checks and transfer systems.
4.2. Market & Competition Analysis
4.2.1. Market Analysis
The entire market of CRDB Workers SACCOS is limited to employees of CRDB Bank Group – CRDB
Bank Plc and subsidiaries in Tanzania, i.e. CRDB Microfinance Services Company Limited. Therefore,
no matter how effective products and services of the SACCOS become, the market will never increase
beyond this number of employees. It is however unfortunate that the Employer – CRDB Bank Plc is
offering financial services, especially credit, to its employees. This limits some financing opportunities
to the SACCOS. Furthermore, there are numerous “informal” social funds that are formed by groups
of employees within CRDB Bank Group – at the level of Branch, Department or other sections. The
employer and these informal groups are offering financial services that are in a way similar to what
the SACCOS is offering to its members.
While the market is limited to the number of staff of CRDB Bank Group, suppliers of financial services
are diverse – the Employer, informal social funds – but notably other providers of financial services
beyond the realm of CRDB Bank Group – that are targeting the general market or other segments in
which members of the SACCOS fall.
Therefore, the SACCOS needs to clearly understand financial needs of all employees of CRDB Bank
Group – as its potential market and systematically choose the segments that it has competence to
serve better – while it is further developing its competitive edge to reach out other segments.
Considering expansion of CRDB Bank Plc – opening subsidiaries outside the boundaries of Tanzania,
the SACCOS will not cease membership of those who are allocated to these subsidiaries or deny
membership to new staff in these subsidiaries whose country of residence is Tanzania.
4.2.2. Competition Analysis
In order to analyze competition of CRDB Workers SACCOS Ltd, five categories of providers of financial
services have been assessed. However, a sixth category is a non-provider of financial services but it
has similar impact to the SACCOS – especially on its savings and deposit products. These categories
are as follows:
 The Employer – CRDB Bank Group

 “informal” social and economic funds within CRDB Bank Group
 “Informal” social and economic funds in communities where employees live;
 Other providers of financial services – Commercial Banks, membership to other community
SACCOS;
 Emerging microcredit Companies;
 Increasingly growing investment avenues
Table 5 below shows the types of products and services provided by each of these categories – their
competitive edge – how they compare to each other, and what might be strategic choices to CRDB
Workers SACCOS.
Table 5 Competition Analysis for the Five Major Categories

Business Implications and
Category of Types and features of Key competitive Key limitations to Strategic choices to the
Competitors products and services edge the competitor SACCOS
 Housing loans – up to 20  Lower interest  no salary advance  The SACCOS can introduce
years repayment period, rates on loans; loans; “salary advance loans” to all
at 6% interest, no  Ample resources  no clear employees of the Bank –
application fees; to provide segmentation of recovered through the
 Unsecured staff personal bigger loans to needs; employer;
loan – up to 5 years, at employees;  it is not the option  The SACCOS need to
6%, no appl. fees;  Effective and for “emergence” conduct a critical survey to
 Secured staff personal efficient systems loans; understand exactly uses of
loans – up to the to take various “unsecured personal loans”
repayment period of 5 types of to staff in order to find the
years; securities, niche it can serve better;
 A wide option of accounts evaluate, perfect  To continue improving on
– varieties of SAVINGS and monitor delivery and features of
Account for self, children, value of these emergency loans
business, dependants; and securities  The SACCOS need to study
CURRENT Account for the financial needs of all
CRDB Bank businesses employees of the Bank in
Group order to increase its
products and services – and
improving features thereon,
that would attract new and
retain members – increasing
consumption rate of its
products and services;
 The SACCOS and
Management of CRDB Bank
Plc will have to bargain on
the possibility and modality
of allowing some financial
products offered by the
Bank to employees to be
managed by the SACCOS.
This has benefits to both –
to staff (management of
interest taxi differential) and

to the SACCOS (increased
earning avenues)
These are informal funds  Quick services –  Limited resources to  The SACCOS need to
under a group of employees – loans are offered grant bigger loan continue improving on its
at a Branch level, Department very fast – amounts delivery – to be able to offer
or other social interactions; usually within  Limited menu of quick and prompt services
 They offer avenues for some hours, or a products and to its members–at least
savings – mostly direct maximum of services; within a day, or any justified
monthly deductions/ day;  Most of these have period;
standing orders;  No social inclinations –  To continue exploring
Employees
 They provide social bureaucracies in they are not for further possibilities to offer
“INFORMAL” benefits to member getting loans – profit and hence bigger and economically-
social and employees – during close approval in in credit is not in their meaningful loans to its
economic or self deaths, weddings, most cases, by core functions; members;
funds births, etc; two people (who  The SACCOS shall explore
 They provide quick loans are signatories) the possibilities of inviting
to member employees – – the Secretary these “informal” funds to
up to TZS10,000,000; a and the become members to the
maximum repayment Chairman; SACCOS – in order to
period of 1 year; and  Increasing social contain competition and
interest rate of up to 15%; bonds between creating a new lending
members avenue
These are similar to the  They have  They don’t have  There is no possibility of
“employees’ social funds”, higher social enough resources to detaching employees from
except that they are outside values to offer “economically” community-based social
CRDB Bank Group – they are employees – and viable loans; funds as they hold social
within the residence hence most  They have strong values the SACCOS cannot
communities of employees. members don’t ties with members – grants to its members;
 Although they offer loans miss their creating a higher however, the SACCOS MUST
and savings avenues, they regular sense of discipline – design appropriate products
Community are mostly joined by contributions – to make and services that address
“INFORMAL” employees of CRDB Bank as this may contributions; financial needs provided by
social and Group for social reasons – trigger attending social these funds. To start with,
economic keeping ties with the possibilities to meetings and the SACCOS should liaise
community; miss fulfilling their with African Life Assurance
funds
 They grant social benefits constitutional membership or through CRDB
– on deaths and wedding social benefits obligations; Microfinance Services
ceremonies of family Company Limited to design
members; Funeral plan schemes to
 Loans granted are not address issues of death
very remarkable – mostly benefits. Further, it can
quick loans of not more explore into other insurance
than TZS2 million
products like health and life.
These are commercial banks,  For the case of  They don’t have  The SACCOS should liaise
other community-based commercial direct access to the with CRDB Bank Plc to
SACCOS and MFIs, apart from banks, they have core income of explore possibilities and
the above. huge resources borrowers (salary of modalities to commence
 They offer a variety of to offer large employees of CRDB offering business loans to its
products and services – at business loans; Bank Group) – and members – this should call
market rates; hence legible to for the SACCOS to build the
 Mostly, employees access  They take “real” defaults in case the necessary capacity to run
financial services from this securities to business fails to pay such a countrywide
category for business cover their loans the borrowed portfolio;
Other loans – as the employer in case of money  The SACCOS should critically
aborted business loans to defaults; analyze types of financial
providers of
staff and the limit of needs its members – and
financial SACCOS’s development  They grant loans generally employees of
services loan of TZS40 million to based on CRDB Bank Group, are
(commercial members not adequate to assessment of accessing from other
‘serious business’. the business or providers in the market
Banks,
 Therefore, members/ “needs” of the
SACCOS and
employees are borrowing customer, rather
other MFIs) from multiple sources to than a mere
satisfy their business pegging with
needs; savings;
 Savings in other
institutions are mostly  They charge
related to business competitive
accounts – and basically as market rates for
the requirement for sustainably
getting loans meeting their
operational
costs
Emerging These present the last  Appropriate for  Extremely high  If the SACCOS could improve
options in case access to the bigger interest rates; on its delivery speed,
Microcredit
above avenues has failed. emergence loans  Lack of customer amount of loans, especially
Companies
 No savings are required to – to carter for focus – impaired on emergency loans, it could
and access loans; business relationships with hugely limit its members
Increasing  Interest rates are so high – emergencies; customers who are getting loans from
Money ranging from 4% to 30%  Accessing money mongers and micro-
per month; resources from credit companies
Mongers
 Loans are pegged with various
values of securities and commercial
are very quick if there are banks
“attractive securities”;
 In most cases loan
agreements have
provisions for forfeiture of

securities in case of failure
to repay – even a single
installment on the loan
Emerging These are various investment  Investment  Not directly  The SACCOS need to review
avenues emerging in the Schemes are attached to its savings and introduce
lucrative
market – for example, shares providing higher members of the deposit products that are
investment in registered Companies, incomes to SACCOS – hence relatively competitive in
avenues incomes from investment investors than relatively limited order to grow its savings
schemes, i.e. Umoja Trust interest incomes proximity (outreach) and deposit portfolio;
Fund (UTT) with investments on members’ to income sources of  The SACCOS should design
schemes that are attractive deposits and members of the and develop an
than savings and deposit savings SACCOS/staff of the independent Investment
accounts with SACCOS or Accounts with Bank Fund for members (or even
Commercial Banks the SACCOS non-members) to contribute
and invest in mutual
investment avenues.
5. The Future of CRDB Workers SACCOS
5.1. Mission Statement
The core reason for existence of the SACCOS will remain the same over the next five years – like it has
been over the past years. However some minor changes have been made in its mission as follows:
The Original Mission Statement was “to provide effective value-added microfinance financial services,
in promoting adequacy savings, wise borrowing and prudent utilization of funds to attain sustainable
development and financial freedom among members.”
Now, the mission statement has been reviewed to read as follows “to provide value-added financial
services, promoting saving culture, wise borrowing and enhancing prudent management of resources
to attain sustainable economic development and financial freedom to its members and staff.”
Therefore, the ingredients of the mission of the CRDB Workers SACCOS will remain the same as
follows:
(i) Promoting savings from its members – to provide convenient saving/deposit avenues for
members to build their own personal resources through their SACCOS; and henceforth
mobilizing its own internal fund, as a remarkable cheap source of financial resources;
(ii) Encouraging and providing conducive environment for its members to borrow, but
training and inculcating the culture of borrowing on productive purposes;
(iii) Prudent management of resources – for the Board, members of various Committees and
Management for enhancing their capacity to manage financial and other resources of the
SACCOS for the interest of members – and to members for enhancing their capacities to
manage their financial resources to improve their economic conditions;
(iv) Encouraging members to invest in mutual investment vehicles of the SACCOS in order to
take advantage of the increasingly growing investment avenues;
(v) Ultimately, the mission of the SACCOS is to ensure its members are prospering
economically and achieving financial freedom;
5.2. Vision Statement
The original vision of CRDB Workers SACCOS was “to become the preferred, unique leading SACCOS
model, providing competitive and reliable financial services to members”.
Therefore, although what the SACCOS wants to achieve and become remains the same, there are
some minor improvements and hence rephrasing the vision to read as: “to become the model and
leading SACCOS in Tanzania, the most preferred institution to its members and potential market, that
provides competitive and reliable financial services”.
Thus, through the reviewed vision CRDB Workers SACCOS wants to:
(i) Become an institution of choice for financial services by its members and the potential
market;
(ii) Become a model and leading SACCOS in Tanzania – operating on modern management
and leadership principles, with appropriate operating systems, an employer of choice. To
set standards for other SACCOS to learn from;
(iii) Providing competitive and reliable financial services to its members – as compared to
other providers in the industry
5.3. Adopted Cultural Values
Because of simplicity and the desire to emulate the culture of CRDB Bank Plc in all its conduct, the
Board and Management of CRDB Workers SACCOS have decided to adopt the corporate cultural
values of the employer – dubbed as PRACTICE, as described in the figure below.
Figure 2 Adopted Cultural Values of CRDB Workers SACCOS
We are guided by our skills, knowledge and values of our profession to adhere to
PROFESSIONAL moral and ethical principles while displaying the highest levels of trustworthiness,
integrity, honesty and loyalty to uphold our Bank's reputation.
We are responsible to our customers and society; we listen to and provide solutions
RESPONSIVE promptly to meet their expectations.
We are responsible for the accomplishment of what is supposed to be done and
ACCOUNTABLE accountable for our actions as employees and members of the society.
We are ready to dedicate our efforts towards achieving the objectives of the Bank
COMMITTED by making them our own personal objectives and in so doing create value to our
customers and shareholders.
We are ready to work with others in cooperation, respect individual views in pursuit
TEAM PLAYER of our goals and embrace diversity and collaboration without functional boundaries
to achieve the best for ourselves, customers and the Bank.
We are committed to develop and adopt creative solutions and put them into
INNOVATIVE action to meet our customers' demand and increase value to shareholders.
We show respect and consideration in all our interactions; we are polite and
COURTEOUS attentive and useful at all times to our customers and colleagues.
We are committed to accomplish the best for our customers and the
EFFICIENT Bank by deploying optimal resources.
6. Strategic Objectives, Goals and Activities
6.1. Key Strategic Areas
From the review of the current strategic position and the envisioned future of the SACCOS, the Board
of Director of CRDB Workers SACCOS has identified six major areas of focus for the next five years:
 Growth of Membership
 Brand and image, and products and services
 Governance and Leadership
 Operational and ICT Systems
 Financial Sustainability
 HR management
6.2. Strategic Objectives
From the six strategic areas above, the Board has derived the following six strategic objectives as
follows:
Strategic Objective 1 To increase and maintain membership to cover at least 95% of

employees of CRDB Bank Plc
Strategic Objective 2 To improve brand and image of the SACCOS; and review and design
new products and services to address financial needs of members and
the potential market
Strategic Objective 3 To enhance governance and leadership framework to support the

envisioned business growth
Strategic Objective 4 To enhance ICT platforms and operational systems to increase
efficiency and effectiveness in service delivery
Strategic Objective 5 To achieve stable and sustainable financial growth
Strategic Objective 6 To procure, develop and maintain competent workforce to deliver

professional services to its members
Therefore, the Board has designed the above six objectives to cover the above strategic business
areas of the SACCOS – hence through these six objectives, CRDB Workers SACCOS is confident to
achieve its mission and vision for the next five years.
6.3. Key Goals, Targets and Key Activities
Strategic Objective 1: To increase and maintain membership to cover 100% of employees of CRDB
Bank Plc
This objective entails to include all members of staff of CRDB Bank Group to become members of
CRDB Workers SACCOS. The Board plans to recruit and provide appropriate products and services to
maintain membership of all members of staff of the Bank. In order to achieve this, table 6 below
identifies some key goals and strategic activities in order to achieve this objective.
Table 6 Key goals, measures, targets and activities for Strategic Objective 1
Baseline
Key Goals Measures Targets Strategies
[2013]
1.1 Recruiting Percentage of 1.1.1 Improving the concept of “branch
new Members to the 68% 95% representation” to allow branch
members total number of representatives to create the intended value
to the SACCOS
staff of the Bank
1.1.2 Enhancing communication between the
Head Office (of the SACCOS) and all Branches
Percentage of (……..) - 100% of CRDB Bank to allow online campaigns
Senior Managers, Aliko 1.1.3 Setting clear performance indicators to staff
Directors and of the SACCOS in terms of membership
Executives of mobilization and growth
CRDB Bank 1.1.4 Enhancing processes during introduction and
Group who are awareness campaigns in orientation
programs of new staff of the Bank
members to the
1.1.5 Strengthening working relationship between
SACCOS the SACCOS and Management of the Bank
Baseline
[2013]
1.2 To maintain Percentage of 1.2.1 Conducting members’ satisfaction survey
active members with at [……..] 80% and general financial needs assessment of
members to least one loan Aliko the potential market in order to determine
the competitiveness of SACCOS
the SACCOS account
1.2.2 Promoting use and benefits of SACCOS’s
products and services to members
Percentage of 0% 90%
1.2.3 Improving features of existing and
members with at developing new products and services in
least one deposit order to address financial needs of the target
account and potential market
1.2.4 Developing mechanisms for getting frequent
feedback from members and swiftly taking
advantage of them
To improve brand and image of the SACCOS; and review and design new
Strategic Objective 2: products and services to address financial needs of members and the
potential market
The SACCOS will review and develop new products in order to address financial needs of its target
market – in order to address the increasing competition, especially from within (CRDB Bank Group
and the increasingly emerging staff informal funds); but also remarkably from the rest of the market
– typically for commercial loans from banks, microcredit companies and other community-based
SACCOS. This is strongly justified from a quick survey conducted by the Facilitator to assess members’
satisfaction on products and services and getting opinion from non-members – whereby each
category expressed a need for the SACCOS to review its existing products to reflect needs of the
vastly changing social profiles of its members.
Therefore, in order to achieve this, Table 7 below depicts some key goals and related strategies that
the SACCOS shall be carrying out.
Table 7 Key goals and strategies for Strategic Objective 2

Baseline
[2013]
2.1 Increase Annual growth 37% 37% 2.1.1 To enhance features of existing products
consumption rate of the loan and services to reflect needs of the
rate on portfolio market
products and 2.1.2 To develop new products and services to
services Annual growth 45% 45% carter for emerging needs in the market
rate of savings 2.1.3 To review and improve delivery
Baseline
[2013]
methodologies to ensure prompt services
Growth rate of 0% 40% to members and profitability to the
deposits SACCOS
2.1.4 To build the necessary operational
capacity and forming a strong liaison with
the Employer for managing some of
financial services offered to members of
staff
2.1.5 To enhance product brands and
marketing strategies to create awareness
among members and the general staff
2.1.6 To explore and form a framework of
operations for members who are still
employees of the Bank but whose country
of employment is no longer Tanzania
2.2 Introduction Framework for 2.2.1 Introducing a framework for providing
of innovative serving N/A By 2014 services to “informal” funds and groups
and employees’ formed by employees of the Bank
competitive informal funds 2.2.2 Introducing insurance services to address
products to developed most of the financial needs addressed by
counteract the informal funds, related to deaths and
competition Funeral plans N/A By 2015 funeral, medical expenses to dependants,
and medical etc
insurance 2.2.3 Introducing financial products for special
introduced and planned social events – e.g. for
marriage, for births, anniversaries, etc
Special N/A By 2016 2.2.4 Introducing commercial loans to members
products to of the SACCOS
address 2.2.5 Liaising with the Bank for the possibility of
planned social managing part of its portfolio to members
events of staff
introduced 2.2.6 Reviewing a Policy for an Internal
Insurance Scheme
To enhance governance and leadership framework to support the

Strategic Objective 3:
envisioned business growth
Because the business of the SACCOS is expected to grow remarkably fast over the next five years,
there is a need to strengthen the capacity of the Board and governance systems to ensure effective
oversight and leadership over its business. Therefore, the Board will institute appropriate frameworks
for ensuring the business of the SACCOS is producing the intended results. Table 8 below shows some
key strategic activities and related targets to achieve this objective.

Baseline
[2013]
3.1 Improve Introduce N/A By 2017 3.1.1 Reviewing and instituting a strong
governance internal audit organizational structure of the SACCOS
frameworks function 3.1.2 Review of operational frameworks to integrate
of the internal audit into other functions of the
Introduce the N/A
SACCOS SACCOS
risk
management By 2018 3.1.3 Development of an Internal Audit Manual and
and an Internal Audit Charter to define the scope of
compliance an internal audit function – specifying the
functions purpose, authority and responsibilities
3.1.4 To assess whether to recruit or outsource
internal audit functions
3.1.5 Review of operations of the SACCOS to develop
a comprehensive risk management system
3.1.6 Introducing risk management and compliance
functions – employing or outsourcing from the
Parent Company
3.1.7 Review of by-laws and other operational
manuals to reflect internal audit and risk
management functions
3.2 Enhancing Learning 3.2.1 To develop annual study tour programmes to
capacity of programmes N/A By 2015 members of the Board, Supervisory and other
the Board of to the Board Committees
Directors and introduced 3.2.2 To undertake training needs assessment (TNA)
Supervisory for the Board and Supervisory Committee and
Committee soliciting appropriate providers to provide
training on the identified knowledge and skills
gaps
3.3 Improving A Service N/A By 2017 3.3.1 Defining areas of working relationship between
working Level the two parties and developing a SLA to
relationship Agreement manage the relationships
between the between the 3.3.2 Creating a strong interface between the Board
SACCOS and Board and of Directors of CRDB Workers SACCOS and the
the Bank Management Management of CRDB Bank Plc for the latter to
of CRDB Bank support the SACCOS on governance and
Plc introduced leadership issues;
3.3.3 Mobilization of members of the Management
Team and senior managers to membership of
Baseline
[2013]
the SACCOS
3.4 Develop and Reviewed and N/A By 2016 3.4.1 Review existing or developing new policies and
review policy developed procedures to govern operations of the SACCOS
and policies and 3.4.2 Conduct training to Board, members of various
procedures procedures committees, management and staff of the
SACCOS on new policies and procedures
To enhance ICT platforms and operational systems to increase efficiency and

effectiveness in service delivery
In order to provide prompt services to its members – the SACCOS needs a robust platform of ICT
systems to enable it automate most of its functions and also importantly, to allow its country-wide
scattered members to access real-time services and support from the SACCOS. Therefore, over the
next five years the SACCOS will greatly need to automate its core functions and enhance
communication between the Head Office and its members. This will facilitate quick and prompt
services and support to members. Remarkably, as the SACCOS is planning to review features and
introduce a wider range of products – especially loans and savings, it’s inevitable for a reliable ICT
system to manage the operations related to these products. Table 9 below shows a list of key goals
and respective strategic activities in order to achieve the required ICT platforms and operational
systems to support the business of the SACCOS

Baseline
[2013]
4.1 Automation of Full automation of N/A By 2014 4.1.1 Updating Finance Solution software
core functions loans, savings, to adequately carter for loans,
of the SACCOS share and deposit savings, shares and deposits
functions 4.1.2 Transforming from manual into
electronic data system and updating
the same in the system
4.1.3 Training all cadres of staff and the
Production of all N/A By 2014 Board for effective utilization of
reports from FS for Finance Solution
decision-making 4.1.4 Review of all processes in the
management of loans, savings, share
and deposits for assigning roles and
responsibilities, and setting
appropriate rights in the system
4.1.5 Integration of Finance Solution with
Baseline
[2013]
mobile phones, online helpdesk (
website), etc, in order to allow
members to view their accounts and
do basic transactions
4.2 Enhancing Development of an By 2015 4.2.1 Development of an integrative
communicatio integrative website website to allow communication and
n systems self-service platforms to members
4.2.2 Introduction of the helpdesk
Functioning of the By 2016 functions through the website and
web-based SACCOS hotlines
helpdesk; 4.2.3 Introduction of online application
system for loans and membership
Functioning of the By 2015 4.2.4 Introduction of online inquiry
web-based systems platforms through mobile phones
for application of and the website of the SACCOS
loans and 4.2.5 Streamlining usage of communication
membership systems of the Bank through a
Service Level Agreement (SLA)
Functioning of the By 2015
web-based account
inquiry system
4.3 Enhancing Reviewed filing and By 2015 4.3.1 Reviewing the documentation and
records and documentation record management system in order
information system to improve access and use of
management By 2017 information
systems Electronic archiving 4.3.2 Introducing an electronic archiving
system introduced system to allow easy management of
and fully electronic information of the SACCOS
functioning 4.3.3 Conducting training to all members
of staff in order to implement an
effective record management system
within the SACCOS
Strategic Objective 5: To achieve stable and sustainable financial growth
The SACCOS will only be able to achieve its other objectives when it is able to attain a stable and
sustainable income over the strategic period of five years. This entails initiatives in growing its assets
and managing all risks associated with this growth; increasing income earning avenues; investing
prudently – directing resources of the SACCOS to profitable ventures; and management and control
of costs. The table below highlights the key goals and strategic activities for achieving this objective.

Baseline
[2013]
5.1 Maintaining a Annual growth 37% 37% 5.1.1 Improving competitiveness of the SACCOS
growing and rate of the loan and features of loan products and delivery
quality loan portfolio methodologies to attract demand from
portfolio competitors
Quality of the 5.1.2 Reviewing and improving loan recovery
loan portfolio ≤5% ≤5% strategies to ensure full recovery of default
(PAR) loans
5.1.3 Creating adequate awareness and
Non-performing ≤2% ≤2% marketing on its loan products and services
loans (NPL)
5.2 Attaining and Annual growth 36% 38% 5.2.1 Review of the pricing policy for products
maintaining an rate of the gross and services to cover the operating costs
annual income income and investments;
growth of 20% 5.2.2 Realigning business processes and
Introduction of N/A By introducing regular performance review
individual based 2017 systems
performance 5.2.3 Introducing new products and services to
review system address emerging financial needs for
members and attracting the rest of the
Full automation market
of all income N/A By 5.2.4 Automation of all income processing and
streams 2016 collection - charges, commissions, interest,
etc
5.2.5 Instituting an effective system for cost
management and control measures
To procure, develop and maintain competent workforce to deliver

professional services to members
The Board realizes that in the absence of the workforce – with appropriate skills and knowledge,
CRDB Workers SACCOS will never be able to achieve its mission and vision. Therefore, the Board has
set an independent objective to ensure the SACCOS is always in hands of an optimum number of
staff, with the right competencies and attitude to achieve its business objectives. As the SACCOS
envisions to become a model institution in Tanzania, undoubtedly its starting point is on the
development and maintenance of capacity of its members of staff. The table below lists key goals and
strategies for ensuring the SACCOS is procuring, developing and maintaining competent workforce.
Baseline
S/N Key Goals Measures Targets Strategic Activities
[2013]
Improved staff […..] By 6.1.1 Reviewing HR policies to ensure
productivity – Aliko 2014 recruitment of competent staff –
measured by gross possibility for outsourcing the services
Efficient and income per 6.1.2 Developing an effective orientation
effective employee program to new members of staff
6.1 recruitment and 6.1.3 Encouraging staff to advance their
employment careers through self-initiated learning
processes Implementing the programmes to acquire the necessary
reviewed N/A By skills
orientation 2014 6.1.4 Liaising with CRDB Bank Plc for
program coordinated orientation programmes
Implementation of N/A By 6.2.1 Conducting a training needs
the Training 2016 assessment – in order to develop a
Program to Staff training plan for training and
development of staff
Improved policy
6.2.2 Producing an optimum budget for staff
on Training and
6.2 Knowledge sharing N/A By training and development
Development of
and attachment 2017 6.2.3 Introducing an internal library for self-
Staff
program with CRDB learning and reference
Bank implemented 6.2.4 Encouraging knowledge sharing and
attachment programme between the
SACCOS and CRDB Bank Plc
6.3.1 Introducing an effective system for
Improved Policy
Full individual performance appraisal
on
implementation of N/A By 6.3.2 Introducing a performance-based
6.3 Compensation
the Compensation 2014 remuneration and incentive system
and Benefits to
and Benefits Policy 6.3.3 Reviewing and improving staff benefit
Staff
package for job retention
6.4.1 Conducting job analysis for clear
description and specification of jobs
6.4.2 Reviewing and enhancing an existing
Review of the Reviewed
By organization structure
6.4 Organization Organization N/A
2014 6.4.3 Integrating branch representative
Structure Structure
model within the organization structure
6.4.4 Establishing strategic planning for
workforce requirements
7. Performance Measures, Implementation
and Monitoring
7.1. Projected Financial Performance
Comprehensive projection of the financial performance of the SACCOS as per the Key Objectives,
Goals and Activities is shown in Appendix A [detailed Financial Forecast of the SACCOS from 2014 –
2018]. Below, table 12 shows the actual performance of CRDB Workers SACCOS and its growth trend
over the period of four years since 2010 to date. From the table, although there has been some
noticeable increase in other areas as the business of SACCOS has been growing, remarkably there has
been no corresponding increase on financial expenses. This is due to the fact that the SACCOS has
been not paying interest on savings and deposits, and its borrowing has been dwindling, as its lending
has been adequately financed by savings from members. Important to note is that there has never
been any efforts to mobilize deposits from its customers. Nonetheless, for the next five years, as the
SACCOS is projecting to continue financing a huge part of its assets from members’ funds, it will start
paying attractive interest to mobilize adequate savings and deposits from members. Likewise, it will
certainly increase its borrowing from the Employer, especially as it reviews and introduces new
products to its members.
Table 12 Past performance and Growth Trend

PAST PERFORMANCE P AS T P ERFORM ANCE TREND
AVERAGE
P E R F O R M A N CE A R E A
2010 2011 2012 2013 2010 2011 2012 2013 ANNNUAL
GROWTH
Membership 694 929 1085 1412 34% 17% 30% 27%
Staffing of CRDB Bank Plc 1438 1653 1898 2063 15% 15% 9% 13%
Membership to Total Staff of the Bank (%) 48.3% 56% 57% 68% 16% 2% 19% 12%
Quality of the Loan Portfolio (PAR) (%) ≤5% ≤5% ≤5% ≤5% 0% 0% 0% 0%
B ASE YEAR
TOTAL ASSETS (ZS million) 1,720 2,090 2,720 4,250 22% 30% 56% 36%
Outstanding Loan Portfolio (TZS million) 1,670 1,910 2,660 4,220 14% 39% 59% 37%
TOTAL LIABILITIES (TZS million) 1,470 1,830 2,270 4,060 24% 24% 79% 42%
Members’ Savings (TZS million) 1,360 1,770 2,230 3,980 30% 26% 78% 45%
Members’ Deposits (TZS million) 0 0 0 0 0% 0% 0% 0%
External Loans (TZS million) 100.1 36.1 00 80.44 -64% -100% 0% -55%
TOTAL SHAREHOLDERS’ FUNDS (TZS million) 241.54 263.01 444.00 730.17 9% 69% 64% 47%
Members’ Shares (TZS million) 46.5 35.9 66.52 172.62 -23% 85% 160% 74%
PAST PERFORMANCE P AS T P ERFORM ANCE TREND
AVERAGE
P E R F O R M A N CE A R E A
2010 2011 2012 2013 2010 2011 2012 2013 ANNNUAL
GROWTH
Reserves and Retained Earnings (TZS million) 205.5 216.5 377.48 557.55 5% 74% 48% 42%
TOTAL INTEREST INCOME (TZS million) 186.35 247.84 331.14 463.53 33% 34% 40% 36%
Interest from Lending (TZS million) 185.96 247.37 330.94 462.53 33% 34% 40% 36%
TOTAL INTEREST EXPENSES (TZS million) 16.99 10.44 8.74 34.56 -39% -16% 295% 80%
Interest on Deposit (TZS million) 0 0 0 0 0% 0% 0% 0%
Interest on Savings (TZS million) 0.385 0.471 0 0 22% -100% 0% -26%
Interest on Borrowing (TZS million) 16.99 10.44 8.73 2.56 -39% -16% -71% -42%
PROVISIONS FOR BAD DEBTS (TZS million) 54.17 35.43 27.54 32 -35% -22% 16% -14%
NET INTEREST MARGIN (TZS million) 169.36 234.40 322.40 428.40 38% 38% 33% 36%
Non-interest incomes (TZS million) 17.24 17.60 14.59 13.04 2% -17% -11% -9%
NET INCOME BEFORE TAXES (NIBT) 56.87 89.41 168.33 178.77 57% 88% 6% 51%
The projected performance for the next five years is based on the average annual growth for the past
four years – assuming the business of the SACCOS will continue to grow, slightly above this past rate.
Table 13 shows the projected growth rate of the SACCOS for the next five years; while table 14 is the
projected performance in real values.
Table 13 Projected Rate of Growth for the Next Five Years

P R O J E C T E D G R O W T H T R E N D (%)
P E R F O R M A N CE A R E A 2014 AVERAGE ANNNUAL
2015 2016 2017 2018
(BUDGET) GROWTH
Quality of the Loan Portfolio (PAR) (%) 0% 0% 0% 0% 0% 0%
TOTAL ASSETS (ZS million) 25% 40% 40% 40% 40% 37%
Outstanding Loan Portfolio (TZS million) 23% 37% 37% 37% 37% 34%
TOTAL LIABILITIES (TZS million) 9% 42% 42% 42% 42% 35%
Members’ Savings (TZS million) 13% 40% 40% 40% 40% 35%
Members’ Deposits (TZS million) 0% 0% 100% 90% 100% 58%
External Loans (TZS million) 24% 24% 24% 24% 24% 24%
TOTAL SHAREHOLDERS’ FUNDS (TZS million) 35% 47% 47% 47% 47% 45%
Members’ Shares (TZS million) 7% 74% 74% 74% 74% 61%
Reserves and Retained Earnings (TZS million) 43% 42% 42% 42% 42% 42%
TOTAL INTEREST INCOME (TZS million) 45% 36% 36% 36% 36% 38%
Interest from Lending (TZS million) 45% 36% 36% 36% 36% 38%
TOTAL INTEREST EXPENSES (TZS million) 108% 80% 80% 80% 80% 86%
Interest on Deposit (TZS million) 24% 24% 24% 24% 24% 24%
Interest on Savings (TZS million) 0% 45% 45% 45% 45% 36%
Interest on Borrowing (TZS million) 584% 24% 24% 24% 24% 136%
PROVISIONS FOR BAD DEBTS (TZS million) 9% 37% 37% 37% 37% 31%
NET INTEREST MARGIN (TZS million) 39% 36% 36% 36% 36% 37%
Non-interest incomes (TZS million) 262% 15% 15% 15% 15% 64%
NET INCOME BEFORE TAXES (NIBT) 59% 51% 51% 51% 51% 53%
From the table above, the quality of the loan portfolio will remain unchanged – with a portfolio at
risk (PAR) of not more than 5% for the next five years. Interestingly, the loan portfolio, liabilities and
shareholders’ funds, will all grow at annual average rates of 37%, 35% and 45% respectively.
Subsequently, total interest income and hence net interest margin will both grow at 38% and 37%,
respectively. Table 14 below is the projection of performance of in real value. Membership of the
SACCOS is expected to grow alongside the total number of staff of CRDB Bank Group – with an
ultimate goal of recruiting 100% of all members of staff.
Table 14 Five Years’ Projected Performance

P R O J E C T E D PERFORMANCE (TZS)
P E R F O R M A N CE A R E A 2014
2015 2016 2017 2018
(BUDGET)
Membership 1,673 2,042 2,425 2,880 3,420
Staffing of CRDB Bank Plc 2,392 2,553 2,853 3,200 3,600
Membership to Total Staff of the Bank (%) 73% 80% 85% 90% 95%
Quality of the Loan Portfolio (PAR) (%) ≤5% ≤5% ≤5% ≤5% ≤5%
Non-performing loans (NPL) (%) ≤2% ≤2% ≤2% ≤2% ≤2%
TOTAL ASSETS (ZS million) 5,320 7,448.00 10,427.20 14,598.08 20,437.31

Outstanding Loan Portfolio (TZS million) 5,210 7,137.70 9,778.65 13,396.75 18,353.55
TOTAL LIABILITIES (TZS million) 4,420 6,276.40 8,912.49 12,655.73 17,971.14
Members’ Savings (TZS million) 4,510 6,314.00 8,839.60 12,375.44 17,325.62
Members’ Deposits (TZS million) 0 160.00 320.00 608.00 1,216.00
External Loans (TZS million) 100 124.00 153.76 190.66 236.42
TOTAL SHAREHOLDERS’ FUNDS (TZS million) 985 1,448.32 2,129.03 3,129.67 4,600.61
Members’ Shares (TZS million) 185 321.90 560.11 974.58 1,695.78
Reserves and Retained Earnings (TZS million) 800 1,136.00 1,613.12 2,290.63 3,252.70
TOTAL INTEREST INCOME (TZS million) 670.24 911.53 1,239.68 1,685.96 2,292.90
Interest from Lending (TZS million) 669.02 909.87 1,237.42 1,682.89 2,288.73
TOTAL INTEREST EXPENSES (TZS million) 72 129.60 233.28 419.90 755.83
Interest on Deposit (TZS million) 54.5 54.50 54.50 54.50 54.50
Interest on Savings (TZS million) 1.22 1.77 2.57 3.72 5.39
Interest on Borrowing (TZS million) 17.5 21.70 26.91 33.37 41.37
PROVISIONS FOR BAD DEBTS (TZS million) 35 47.95 65.69 90.00 123.30
NET INTEREST MARGIN (TZS million) 597.02 811.95 1,104.25 1,501.78 2,042.42
Non-interest incomes (TZS million) 47.21 54.29 62.44 71.80 82.57
NET INCOME BEFORE TAXES (NIBT) (TZS million) 283.41 427.95 646.20 975.77 1,473.41
7.2. Key Performance Indicators
In order to measure performance of the SACCOS, the table underneath shows some selected key
performance indicators that will be used by the Board of Directors. All the strategic activities in the
previous chapter, from objective 1 to objective 6 are meant to achieve these indicators. Thus, if these
indicators are achieved as projected, CRDB Workers SACCOS will have accomplished its strategic
objectives by 2018.
Table 15 Key Performance Indicators Matrix

Base Year Projected Performance Indicators
Indicators
(2013) 2014 2015 2016 2017 2018
Membership growth 1,412 1,673 2,042 2,425 2,880 3,420
Value of the loan portfolio (TZS bn) 4,220 5,210 7,137.70 9,778.65 13,396.75 18,353.55
Quality of the loan portfolio (PAR) ≤5% ≤5% ≤5% ≤5% ≤5% ≤5%
Value of savings (TZS bn) 4,060 4,510 6,314.00 8,839.60 12,375.44 17,325.62
Value of deposits (TZS bn) 0.00 0.00 160.00 320.00 608.00 1,216.00
Value of Shares (TZS mn) 173 185 322 560 975 1,696
Return on Assets (ROA) 6% 5.% 5.7% 6.2% 6.7% 7.2%
Return on Equity (ROE) 38% 28.7% 30% 30% 31% 32%
Savings and Deposits to Total Assets 84% 84% 87% 88% 89% 90%
7.3. Implementation and Monitoring
In order for the Board and Management to achieve the projected business growth of the SACCOS,
they shall institute an effective monitoring framework to ensure the key performance indicators
(KPIs), and hence the expected objectives are achieved accordingly. Therefore, the Board will
institute quarterly performance appraisal system – whereas Annual Business Plans, and
corresponding KPIs, shall be broken down to Quarterly Business Plans in order to allow quarterly
performance assessment throughout the year. This will greatly assist the Management to implement
the strategy and the Board to follow up closely and keep track on the progress.
The SACCOS shall implement its Strategic Business Plan via its annual business planning and
execution process. Thus, each Annual Business Plan of the SACCOS shall be part of the Strategic
Business Plan and intending to achieve its long term strategic objectives. Therefore, performance of
the Strategic Business Plan shall be measured by measuring annual performance of the business
through monitoring systems adopted by each Annual Business Plan.
7.3.1. Effective execution of the Strategy
Effective implementation of the Five Years Strategic Business Plan of the SACCOS shall commence in
January 2014 after the approval by members, through the Annual General Meeting. The approved
SBP shall be well communicated to all members of staff of CRDB Workers SACCOS and branch
representatives, for a common understanding and hence effective implementation of the same.
For effective implementation of the Strategic Plan, the Management and the Board of Directors shall
need collective efforts from employees, members and the employer – CRDB Bank Group.
7.3.2. Review and updates of the Strategic Business Plan
The Strategic Business Plan shall undergo annual reviews and updates, from September to December
of each year as part of the preparation of the Annual Business Plan for the subsequent year. This is
important in order to make sure the Strategy is in-line with the changing business environment and
to address priorities of members. The Management and the Board shall facilitate the exercise to
review and update the Strategic Business Plan. All reviews and updates shall be approved by
members before their implementation.
APPENDICES
COMPREHENSIVE FINANCIAL FORECAST [to be shared in 2 weeks]

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CRDB WORKERS SACCOS LIMITED

FIVE YEARS STRATEGIC BUSINESS PLAN

Chairman’s Note ....................................................................................................................................................ii

The SACCOS is offering the following financial products:

2.1. The Approach in developing the Strategic Plan

2.2. Structure of the Strategic Plan

Figure 1 Three Major Areas of the Strategic Business Plan

• Review of its current strategies

• Setting its Strategic Objectives

Deciding on the desired

3.1. Performance Overview

3.1.1. Evaluation of Previous Strategic Business Plan

3.1.2. Current Performance

Table 2 Performance of CRDB Workers SACCOS for 2012 and 2013

3.1.3. Products and services

3.1.4. Operational Effectiveness

3.1.4.1. Staffing and Support of the Branch Representatives

3.1.4.2. Communication and ICT Platforms

3.1.4.3. Strategic Support from the Employer

3.2. Mission Statement

3.3. Vision Statement

(i) Become an institution of choice by its members;

3.4. Values Statements

Customer Centric (C)

3.5. SWOC Analysis

A salary-based product menu to members

case the guaranteed loan and values of securities

framework and available capacity of the  Looking for possibilities of

A reliable customer  Potential to increase

cost resources for on- growing its portfolio at sources funds;

Employer’s decision  This has improved the  The SACCOS should be

like PPF and NSSF  Strengthening working

4.1. Environmental Analysis

4.1.1. Political Analysis

4.1.2. Economic Analysis

4.1.4. Technology Analysis

4.2.2. Competition Analysis

 The Employer – CRDB Bank Group

Table 5 Competition Analysis for the Five Major Categories

interest taxi differential) and

products like health and life.

provisions for forfeiture of

5.1. Mission Statement

5.3. Adopted Cultural Values

6.1. Key Strategic Areas

6.2. Strategic Objectives

Strategic Objective 1 To increase and maintain membership to cover at least 95% of

Strategic Objective 3 To enhance governance and leadership framework to support the

Strategic Objective 5 To achieve stable and sustainable financial growth

Strategic Objective 6 To procure, develop and maintain competent workforce to deliver

6.3. Key Goals, Targets and Key Activities

Table 7 Key goals and strategies for Strategic Objective 2

To enhance governance and leadership framework to support the

Table 8 Key goals and strategies for Strategic Objective 3

To enhance ICT platforms and operational systems to increase efficiency and

Table 9 Key goals and strategies for Strategic Objective 4

Strategic Objective 5: To achieve stable and sustainable financial growth

Table 10 Key goals and strategies for Strategic Objective 5

To procure, develop and maintain competent workforce to deliver

Table 11 Key goals and strategies for Strategic Objective 5

7.1. Projected Financial Performance

Table 12 Past performance and Growth Trend

Table 13 Projected Rate of Growth for the Next Five Years