FSDT forms alliance to boost small businesses
FINANCIAL institutions supported by the Financial Sector Deepening Tanzania (FSDT) have formed an Alliance for Inclusive Finance aimed at boosting the growth of small businesses in the country.
The FSDT Chief Executive Officer, Ms Pamela Shao said on Wednesday that the development of the Alliance is a result of the Inclusive Finance for Growth of Women and Youth (MSMEs) forum that was held in Dar es Salaam.
“Through the Alliance, member institutions will access financial facilities and technical assistance to enable them to strengthen their micro and small-business financial services provision,” she said.
She added that member institutions will also have visibility through media channels to reach more unbanked MSMEs.
Ms Shao said that according to the Tanzania Chamber of Commerce, Industry and Agriculture, micro, small, and medium-sized enterprises (MSMEs) have contributed up to 35 per cent of Tanzania’s GDP and generate up to 40 per cent of total employment.
“Through these triumphs, access to affordable and relevant financing is among the major factors hindering their business growth, but with the right measures, the financial sector can play an important role in creating an enabling environment for the growth of MSMEs and enabling financial institutions to serve this largely untapped market segment, such ambitions have driven the formation of the Alliance,” she said.
Participants who agreed to the formation of the alliance included CEOs, Directors, Heads of Departments, and Managers of Small and Medium Enterprises, banking from Akiba Commercial Bank, Bank of Africa, ASA Microfinance Tanzania, DCB Commercial Bank, FINCA Microfinance Bank, Letshego Bank, Mwanga Hakika Bank, People’s Bank of Zanzibar, United Bank for Africa, Access Bank, NCBA Tanzania, TCB Bank, Maendeleo Bank, Vision Fund Tanzania, and BRAC International.
Other participants included the CEOs of Creditinfo Tanzania, DOT Tanzania, and Dons from the University of Dar es Salaam-Business School.
Mr Jagjit Singh, Managing Director of Mwanga Hakika Bank, said the Alliance would enable them find relevant financing solutions to better serve women and youth MSMEs in Tanzania.
Adding to it, Ms Singh said the formation of the Alliance for Inclusive Finance for MSMEs in Tanzania will create a brighter future for MSMEs as well as financial institutions in Tanzania. The expansion of the MSME sector reflects the expansion of the Tanzanian economy.
The Financial Sector Deepening Tanzania (FSDT) was established in Tanzania in 2004 to support the development of the financial sector in Tanzania. It has aimed to contribute to poverty eradication measures in the country to date.
