MEMORANDUM OF UNDERSTANDING

FOR THE SERVICE PROVIDER OF THE PROVISION

OF EDUCATION SERVICES UNDER IJARA FINANCING

This Agreement is made this ………… day of May 2022.

BETWEEN

THE PEOPLE’S BANK OF ZANZIBAR LTD (PBZ) a Government Limited Liability

Company, incorporated under the Company’s Act. No 15 of 2013, of the Laws of Zanzibar,
whose registered Offices are at Mpirani 2nd Floor, P.O Box 1173, Zanzibar (The Company),
(hereinafter called “the Financier”) on the one part,

AND

_____________________________________an Institution Registered Under Registration

Number____________________________________________.of P.O. Box
____________________ (Hereinafter called “Service Provider” which term shall apply to its
assigns and successors in title) of another party;

Recitals

Whereas-

A. The Bank and the Service Provider enter into this MOU to become the agent of the
bank to facilitate the provision of Education Services to the Bank’s clients.
B. The Institution declares that it has capabilities and hence confers legal rights to act as a
Service Provider between the Bank and the applicant (Student/s).
C. The Service Provider is able, willing, and has the capacity to act as Service Provider for
all Students that will be given facility from the Bank under this scheme.
D. The students will be financed, through the institution with financing to cover /her
full/part of the Institution’s cost, on agreed terms and a specified period.
E. The students will be liable for financing repayment.

Now, this agreement is witnessed as follows: -

1. Commencement, Termination, and Renewable of the MOU

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1.1. This MOU shall commence upon being signed by the Parties.
1.2. This MOU will be effective from the date of signing and thereafter shall periodically be
renewed for a further term in case of needs by both parties’ subject to review of both
the terms (where necessary) and the success attained during the previous period.
1.3. The intention to renew or terminate the contract shall be communicated to either Party
not less than one month before its effect.
1.4. In whatever case, the termination of this MOU shall not affect any party’s rights,
benefits, and obligations entitled under this MOU; all benefits entitled to any party
shall proceed as if this MOU was still in effect; only granting of financing shall be
discontinued immediately after a legitimate termination.
2. Guarantee
2.1. Personal Guarantee by the applicant to secure the financing, extended by the bank, and
proof of financial ability to repay the financing.
2.2. Unequivocal commitment document issued by the University to guarantee that it will
bar the Principal Beneficiary from attending classes, seating for exams, accessing
university facilities, non-issuance of transfer certificate and exit permit if they fail to
comply with terms and conditions of the financing, and hold certificates until proof of
financing payment is received from the bank through the Service Provider.

3. Obligations/Responsibilities of Bank
3.1. The Bank will do its own vetting of the documents presented by the applicant as
approved by the Service provider to ensure that they are acceptable and that they meet
the standards set by the Bank before issuance of financing to the applicant/s.
3.2. The bank shall be at liberty to accept or reject an application presented by the Service
Provider in accordance with Bank’s procedures.
3.3. Upon successful assessment of the financing application, the bank will finalize
financing procedures including disbursement of the financing amount to the Service
provider.
4. Obligations/Responsibilities of Service Provider

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4.1. The Service Provider will identify the appropriate course at the institution as per
applications received in accordance with the prevailing procedures and provide relevant
Admission Letters to the applicant.
4.2. The Service Provider shall have the responsibility to produce a good and quality
education for the student in order to avoid conflict between the parties.
4.3. The Service provider shall provide any support and Corporation that may be demanded
by the Bank and its clients with respect to any issue that may need clarification or
follow up at your Institution.
5. Governing Law and Dispute Resolution.
5.1. This MOU shall be governed and construed following the Laws of Zanzibar.
5.2. Any dispute between the parties shall at all times be resolved amicably through the
representative of the parties. However, if any attempt of making an amicable resolution
fails, the aggrieved party will be at liberty to seek court redress.
6. Confidentiality
6.1. Both parties shall not during the term of the contract or termination to disclose or allow
the disclosure of the details of this contract or any other confidential information related
to this project.
6.2. Both parties shall treat all information of clients on this project as private and
confidential to other delegates, company, or society unless it is prior agreed due to
necessity.
7. Termination
7.1. Without prejudice to the foregoing and to the generality of this Agreement, this
Agreement will elapse upon the occurrence of any of the following conditions:
 If the objectives for which it is executed have not been discharged by the Parties
as agreed.
 If any of the Parties is unable or unwilling to continue with the purpose of the
Agreement.
 On the expiry of the term provided hereinabove.
 On convenience by either Party upon issuance of one (1) month notice.
 Termination of License of either Party due to regulatory issues.
8. Renewal

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8.1. This MOU may be renewed at the expiry of the term provided hereinabove if deemed
necessary by the Parties.
9. Notices
9.1. Any notice or other document to be served under this Agreement to a Party may be
delivered or sent by post to the Party to be served at its address set out below: -

To: MANAGING DIRECTOR,

People’s Bank of Zanzibar Ltd (“the Financier”) To: ……………………. (the Service
P.O. Box 1173 Provider) ……………………………….,
Zanzibar, P. O. Box ………………………
Tanzania Tel: +………………………………
Tel: +255 24 2231118/9 Zanzibar- Tanzania
Fax: +255 24 223 4572

IN WITNESS WHEREOF, the Parties hereto have duly executed the Agreement by
these presents in the manner and on the day hereinbefore appearing: -

THE PBZ LTD, STAMPED/SEALED with the COMMON STAMP/SEAL of

THE PEOPLE’S BANK OF ZANZIBAR.
And delivered in the presence of us this……… day off…… 2022
Name: ……………………………. Name: ………………………………
Signature: ……………………….. Signature: …………………………..
Qualification: …………………… Qualification: ………………………
Postal Address: P.O. Box 1173 Postal Address: P.O. Box 1173,
Zanzibar. Zanzibar.
FOR THE …………………………..INSTITUTION
STAMPED/SEALED with the COMMON STAMP/SEAL of……………………….
And delivered in the presence of us this……………day of ………….. 2022.
Name: ……………………………… Name: ………………………………..
Signature: …………………………. Signature: ……………………………
Qualification: VICE CHANCELLOR Qualification: DEPUTY VICE
CHANCELLOR ADMINISTRATION
Postal Address: P.O. Box Postal Address: P.O. Box

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…………..ZANZIBAR …………., ZANZIBAR