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In Tanzania, thirteen financial institutions have agreed to form a coalition in an attempt to increase financing to the micro, small and medium-scale enterprises (MSMEs) in Tanzania. The consortium plans to promote the small sector, which plays a pivotal role in shaping the country’s economy
In Tanzania, thirteen financial institutions have agreed to form a coalition in an attempt to increase financing to the micro, small and medium-scale enterprises (MSMEs) in Tanzania. The consortium plans to promote the small sector, which plays a pivotal role in shaping the country’s economy.
The financial institutions in the consortium include Akiba Commercial Bank, Access Bank, Asa International, DCB Commercial Bank, Finca Microfinance Bank, Letshego Bank, Mwanga Hakika Bank, People’s Bank of Zanzibar, TCB Bank, United Bank for Africa, Bank of Africa, NCBA and Maendeleo Bank.
The move is set to empower member institutions to increase access to and usage of quality financial services for the growth of women and youth. The decision to form the consortium was taken at an MSME forum that was held recently. The consortium will enable member institutions to access financial facilities and technical assistance to enable them to strengthen their MSMEs financial viability.
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According to the Tanzania Chamber of Commerce, Industry, and Agriculture, MSMEs contribute 35 percent of Tanzania’s gross domestic product (GDP) and generate 40 percent of total employment. Notwithstanding that, most of them face acute shortages of funds, which hinder their growth. The chamber observes that the financial sector can play an important role in creating an enabling environment for the growth of MSMEs and enable financial institutions to serve this largely untapped market segment.
