CAPITAL MARKET: Tanzanian women urged to formalise businesses
DAR ES SALAAM: Women entrepreneurs in Tanzania have been encouraged to formalise their businesses in order to access the capital market.
The Finance Manager of the Capital Markets and Securities Authority (CMSA), Mr. James Nyanda, made this remark during a training session held in Dar es Salaam on Thursday, aimed at empowering women to access capital to boost their businesses.
He emphasized the importance of proper record-keeping, even for small businesses, explaining that well-maintained records are a crucial factor for funders when considering loans or investments.
“It’s crucial to prepare in advance before seeking capital, maintain proper business documentation, and ensure your business is registered to obtain the necessary licenses for formal recognition,” he advised.
He further explained that investors are more likely to fund businesses operated by groups, as this demonstrates sustainability and accountability compared to individually run ventures.
For his part, CMSA’s Public Relations Manager, Mr. Charles Shilima, cautioned women to be wary of fraudulent schemes, noting that many have fallen victim to scams promising high returns without clear paths to success.
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He urged women to verify whether financial institutions are recognized and regulated by the government before engaging with them.
“Many women have been misled by fraudsters who exploit psychological tactics, showing attractive returns but concealing the process to achieve them,” Shilima warned.
On her part, the Chairperson of the New Face New Voices organization, Ms. Emma Kawawa, highlighted the importance of registering businesses with the Business Registrations and Licensing Agency (BRELA), which would enable entrepreneurs to gain formal recognition from investors.
The training session, organized by the Graca Machel Trust through its Women Creating Wealth program in partnership with Afrishela, brought together women representatives from various associations and companies across the country.
The aim was to equip them with knowledge on securing capital from the market for the expansion and establishment of their businesses.
