In a compelling presentation at the CFO East Africa Summit, Juma Kimori, the CFO of NMB Bank, laid out his vision for the evolving role of CFOs in today’s dynamic business environment. He highlighted the significant transformation of the CFO's role from traditional financial stewardship to strategic leadership focused on value creation, digital innovation, and sustainability.
“The role of the CFO is no longer just about numbers,” Juma emphasised. “Today, we are strategic partners to the CEO and the Board, actively involved in shaping the future of our organisations.”
This shift, he noted, aligns with research by McKinsey and EY, which found that over 80 percent of CFOs believe their roles have become more strategic over recent years.
Juma shared that NMB Bank has redefined the responsibilities of its finance team to support this new strategic focus. “We have moved from being mere financial controllers to becoming enablers of business growth. Our efforts now encompass strategy formulation, value creation, risk management, and stakeholder engagement,” he said.
A key aspect of this transformation is leveraging technology to enhance operational efficiency and customer experience. Juma detailed NMB Bank’s investments in digital channels and automation, which have streamlined operations and improved service delivery.
“We have automated our reconciliation and procurement processes, which has not only reduced errors but also freed up our team to focus on strategic initiatives,” Juma explained. “Our digital channel, NMB Mkononi, now accounts for 47 percent of our total alternative channel transactions, a significant increase from previous years.”
Juma underscored the importance of technology in driving the bank’s efficiency and competitiveness. “CFOs must embrace digital capabilities and data analytics to provide timely insights and support decision-making,” he stated. “At NMB, we are using these tools to enhance our business processes and deliver superior value to our customers.”
Focus on value creation and sustainability
Juma’s presentation also highlighted the growing emphasis on value creation and sustainability within the CFO’s portfolio. “Value creation is not just about optimizing financial metrics,” he noted. “It’s about fostering innovation, maximizing shareholder returns, and ensuring long-term sustainability.”
He pointed to NMB Bank’s focus on balance sheet optimisation as a key strategy for driving profitability. “We have moved beyond traditional balance sheet management to focus on optimising our financial resources, which has led to significant improvements in our Return on Equity (RoE) and Earnings Per Share (EPS). Our ROE has grown to a stunning 29 percent in 2023 which is a significant shift from 11% reported before transformation in 2018 while EPS has increased by 556 percent over the same period,” he said.
NMB Bank’s commitment to sustainability is also a core component of its strategy. “Sustainability is integral to our business model,” Juma stated. “We have adopted a Sustainable Financing Framework aligned with the UN Sustainable Development Goals. In 2022, we issued a TZS 400 billion sustainable bond to support low-carbon initiatives, making it the first of its kind in East Africa.”
The bank’s sustainability initiatives also include planting 1.2 million trees across Tanzania, a testament to its commitment to environmental stewardship.
Enhanced stakeholder management
The CFO’s role in stakeholder management has expanded significantly, according to Juma. “Engaging effectively with our investors, regulators, customers, and employees is critical for building trust and ensuring transparency,” he said.
NMB Bank has taken steps to strengthen its investor relations unit and has introduced roles focused on sustainability to meet the growing demand for responsible business practices.
“By proactively managing stakeholder expectations and clearly communicating our strategic direction, we have reinforced our reputation as a trusted financial institution,” Juma explained.
Juma described the ongoing transformation at NMB Bank as a continuous process, one that began with a comprehensive diagnosis of the finance function.
“We identified areas where we could enhance efficiency and effectiveness, such as restructuring our teams to improve business partnering and strengthening our data analysis and strategy units,” he said. “These changes have enabled us to move from a support role to being strategic drivers of business growth.”
“Investing in human capital has also been a priority for NMB Bank. We have focused on upskilling our teams, which has led to substantial productivity gains,” Juma continued. “While our staff cost ratio to total operating expenses has increased, this investment has been justified by the improved productivity per staff member. We are investing in our people to unlock their full potential and drive our business forward.”
As he concluded his presentation, Juma highlighted the ongoing evolution of the CFO role. “The CFO of tomorrow must be agile, forward-thinking, and willing to embrace change,” he stated. “By focusing on strategic value creation, leveraging technology, driving sustainability, and engaging with stakeholders, we can lead our organisations towards a future of growth, profitability, and resilience.”
Juma’s vision for a future-ready CFO is one that aligns with the broader economic and social development goals of the region.
“Let us commit to continuous learning, innovation, and collaboration,” he urged his peers. “By doing so, we will not only secure the success of our organisations but also contribute to the prosperity and sustainability of our communities.”
