Equity reiterates empowering SMEs with better access to credit

DAR ES SALAAM: EQUITY Bank has reiterated its commitment to supporting entrepreneurs and small business owners by addressing one of the key barriers to accessing credit, lack of financial visibility.

The pledge was made during an entrepreneurs’ and business forum held in Mwanza, which brought together traders, financial experts and bank officials to exchange ideas on business growth and sustainability.

Equity’s General Manager for Business, Leah Ayoub, said the main reason many entrepreneurs fail to secure loans is not the absence of viable ideas, but their failure to build a banking record.

“A majority of business owners do not channel their funds through banks and this makes it difficult for lenders to assess their repayment capacity,” she said.

Equity Bank Mwanza Business Manager Emerald Mutajwaa said there is an importance of bringing financial solutions closer to entrepreneurs in the Lake Zone.

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“We want both large and small traders, whether in urban or rural Mwanza, to feel confident approaching the bank for credit, that starts with building trust and financial discipline,” she said.

Participants at the forum welcomed the initiative, with Kechu Nkya, a local business owner, praising the bank’s efforts in educating traders on financial management.

“The problem for many of us is not just capital, it is understanding how the banking system works, this training has opened my eyes to the importance of keeping records and using banks regularly so that, when we need a loan, we are recognised,” he said.

Tanzania’s small and medium enterprises (SMEs) contribute nearly 35 per cent to the national GDP and provide about 5.0 million jobs, making the sector a critical driver of inclusive growth. However, lack of access to affordable credit has long been cited as one of the key obstacles limiting their expansion.