Capability Development

To improve confidence and capability of women and youth to demand and use financial solutions.

We advocate to improve capabilities of women and youth to utilize financial solutions to tap into economic opportunities in their environment.

MAIN OBJECTIVE

The main objective is to increase women and youth’s capacities to access and use financial services from public and private sectors, with a focus on increased incomes, economic empowerment, and resilient livelihood.

These interventions are implemented in collaboration with policymakers, regulators, academia, development partners, private sector organizations, and research houses.

Key interventions include the development of Capability Development Programs, as well as advisory services, enterprise development, access to markets, enterprises digitization, and consumer protection awareness campaigns for women and youth, women and youth-based associations, and Micro and Small Enterprise owners and operators.

Current Projects

Impact Grant Fund

The MSME Impact Grant Fund aims to bridge this gap by providing catalytic grants to support promising enterprises in investing in growth, formalization, and accessing new markets. Focusing on high-impact sectors such as green energy, waste management, and digital trade, the fund is designed to empower MSMEs to create jobs, increase incomes, and foster inclusive economic transformation across Tanzania.

The Fund provides capital grants for start-up costs, like equipment and technology, as well as operating grants for working capital to women- and youth-led MSMEs engaged in high-impact enterprises, especially those involved in climate-neutral and sustainable activities. Recipients will then be connected with financial service providers to access credit, equity, and transactional products.

Impact Grant Fund

Impact Grants Fund focuses on supporting women and youth-led MSMEs with capital and operating grants to help them start, grow, or formalize their businesses. It focuses on businesses with high potential for social and environmental impact, especially in green and digital sectors.

Impact Grant Fund

Whose lives are we trying to improve?

The intervention aims to improve the lives of women of all ages and youth between 18 and 35 who operate micro, small, and medium-sized enterprises (MSMEs) across Tanzania. These enterprises may be at the start-up stage or in early growth, with significant potential for expansion, especially those contributing to the green, circular, and digital economy.

What challenges are they currently facing?

The targeted beneficiaries have limited access to start-up or expansion capital, mainly because mainstream financial services often impose strict eligibility requirements, such as demanding tangible collateral and charging high interest rates. Limited access to capital leads to insufficient access to the necessary business tools, human resources, productive equipment, and market opportunities essential for efficient operations and growth.

What Market System Change must take place to resolve the challenge?

A fundamental shift is necessary in how the market addresses financing for women- and youth-led MSMEs. The system must incorporate blended finance tools and grants to mitigate risk barriers, encouraging formalization, innovation, and growth. Additionally, systems should identify and provide high-potential MSMEs with blended finance, capacity-building, and market access.

How will FSDT intervene?

FSDT will establish an Impact Grant Fund that offers both Capital and Operating Grants to women and youth MSMEs. Capital Grants will help enterprises invest in startup infrastructure, equipment, and formalization processes. Meanwhile, Operating Grants will aim to improve working capital to support business growth and operations. Grant amounts will range from TZS 1 million to TZS 50 million, depending on enterprise size and the expected impact of the investment.

Eligible enterprises are those that have employed or been led by at least 50% women and youth and possess a strong business plan or investment case approved by the investment committee. FSDT will enforce a co-investment requirement of at least 20% and provide light technical assistance to promote sustainability. Selected grantees will also be linked with financial service providers for additional credit and equity opportunities where applicable.

What are we hoping to achieve through this intervention?

This intervention aims to expand access to catalytic finance for women and youth-led MSMEs. It also expects the grant fund to accelerate the growth of businesses in high-impact sectors like renewable energy, waste management, and digital commerce. This will boost productivity and formalize previously informal businesses, while building a pipeline of enterprises ready for further investment from financial service providers and venture capital funds. Ultimately, this will promote greater financial inclusion and socio-economic empowerment.

What lasting impact do we intend to achieve?

The Impact Grant Fund aims to build long-term financial resilience among women and youth entrepreneurs. It will support job creation, increase household income, and promote economic diversification in underserved regions.