What we offer
The FSDT can invest in a wide range of other projects that increase:

- the range of financial services available to the poor
- the diversity of institutions serving poorer people
- the amount of money intermediated by the financial system, and
- the extent to which capital is allocated by private sector financial institutions to small private enterprises.

Our investments include research and development of financial markets, products and services, training and other capacity-building, strengthening smaller financial institutions to become credible and creditworthy counterparts for larger ones, developing regulatory and supervisory frameworks, and new technology development.

The FSDT can invest in four types of financial instruments:
- Grants
- Loans
- Guarantees to support commercial loans
- Debt/equity instruments such as convertible loans

The Trust does not seek to make a profit, but expects to get loans repaid and receive fees for guarantees. We aim to complement not replace commercial financing, especially where risks levels currently price many smaller and poorer customers out of the market.

FSDT's Micro and SME Financing
One of the important constraints to SME financing in Tanzania is the lack of appropriate products. Successful SME financing programmes have in common methodologies that combines features of microfinance and conventional banking. The FSDT will continue to support the entry of specialized SME bankers. This will take Greenfields (new banks launched from scratch) and re-orienting existing banks to the SME market. The FSDT will also support SME Bankers to develop new products and expand their operations using specialized Technical Assistance.

The usual churn of skilled staff in the financial sector is especially rife among SME Banking specialists. The FSDT aims to address this shortage by supporting SME Banking training for skilled bankers and loan officers working with MFIs through banker training organs. A larger pool of skilled workforce with SME Banking expertise will increase the chances that commercial banks adopt successful SME banking methodologies.

The FSDT plans to explore SME-targeted leasing services from both new entrants and emerging financial companies. It fund for institutional building and product development and, if necessary, capital in order to accelerate outreach. Leasing finance enables entrepreneurs to finance capital investments while dispensing with the need for collateral, which remains an important barrier for SME financing.