Enhanced Access To Finance: Micro, Small And Medium Enterprises (MSME) Financing Gateway Launched In Tanzania
Date
11/28/2024 2:48:05 AM
(MENAFN- APO Group)
In a significant step towards strengthening financial inclusion and economic empowerment, the MSME Financing Gateway was officially launched at a ceremony held in Dar es Salaam.
The Tanzania Bankers Association (TBA) in collaboration with the
International Trade Centre , (ITC) through the second phase of the
European Union
(EU) funded, EU-East African Community
(EAC) market Access Upgrade Programme (MARKUP II) launched the Gateway.
The MSME Financing Gateway is a digital platform that will improve access to finance and business development services for MSMEs across Tanzania. It will also help improve information transparency and connect MSMEs with multiple resources they need to grow and succeed. The platform is available in Burundi, Kenya Uganda, Tanzania and Rwanda.
Mr. Theobald Sabi, CEO of NBC Bank and TBA Chairman emphasized the crucial role MSMEs play in Tanzania's economic landscape.“Today, we stand united by a common vision: to support the growth of MSMEs by enhancing their access to finance. The MSME sector is estimated to contribute about a third of the GDP and employ 20%-35% of the Tanzanian Labor force, yet challenges remain in accessing the financial resources needed for growth.” said Mr. Sabi.
Paola Trevisani, Head of Infrastructure and Regional Cooperation at the EU Delegation to Tanzania, highlighted the importance of MARKUP II in overcoming challenges faced by MSMEs. She explained that the program focuses on enhancing trade facilitation, market linkages, and capacity building, particularly for MSMEs in agriculture and agribusiness.“With today's launch of the MSME Financing Gateway, we hope to establish an ecosystem where Tanzanian MSMEs can thrive in both local and international markets,” said Ms. Trevisani.
MSME Financing Gateway has successfully registered 40 Financial Institutions, and 20 Business Development service providers.
The framework aims to reach 50% of businesses that actively maintain accounts with financial service providers and contribute 25% increase in total credit by the end of 2028. It addresses the issue of access and uptake of formal financial products and services for MSMEs.
The Financing Gateway will focus on promoting the use of financial technology to reduce informality of MSME operations, promoting business formalization, enhancing access to credit, and improving capabilities of businesses through financial literacy.
Distributed by APO Group on behalf of International Trade Centre.
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