Financial Solutions
To support financial service providers to develop and scale innovative and responsive financial solutions for women and youth to promote equality, empowerment, and wellbeing.
We advocate to increase the offering of innovative and responsive products and services targeting women and youth-owned or managed MSMEs.
To achieve this, FSDT implements the following three distinctive interventions
- Financial and Digital Inclusion for Women MSE Merchants in Tanzania to facilitate the development of new or scale-up existing
- Inclusive Finance for Growth of MSMEs, Women, and Youth to facilitate the deployment of short and medium-term financing instruments, including a Debt Fund, by establishing a line of credit and guarantee scheme to FSPs, and an Equity Fund to provide funding to SMEs in selected growing sectors. The intervention will also establish Technical Assistance Programs for FSPs and regulators and provide capacity-building and related support to participating institutions.
- Inclusive Green and Circular Economy Financing for Women and Youth Enterprises to improve the availability of quality and accessible financial products and capital investments for women and youth enterprises through the establishment of a Subsidy Fund, for the provision of seed capital to new and start-up enterprises, Credit Guarantee Schemes and Technical Assistance to FSPs. The intervention targets women and youth enterprises operating in 3 subsectors; 1) Solid Waste Management and Environment Management; 2) Fish Processing and Trading; 3) Seaweed Farming in Mwanza Municipal Council, Tanga Town Council, and Pemba Island.
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.
INTERVENTION PERIOD
2024 - 2027
FUNDED BY
Technical Assistance and Advisory Services
The technical assistance and advisory services programme aims to strengthen the operational capacity of Tier 2 banks, Tier 1 Microfinance Banks, and Tier 2 Microfinance Service Providers in Tanzania. The project seeks to address systemic issues such as weak risk management, low digital adoption, limited product innovation, and insufficient outreach to underserved youth and women MSMEs in both rural and urban areas. By offering targeted technical and advisory support in areas like governance, digitalization, credit portfolio management, regulatory compliance, and staff development, the programme intends to equip financial service providers with the tools, insights, and skills needed to create inclusive, gender-responsive, and MSME-focused financial solutions that meet the needs of young people and women in the market.
Technical Assistance and Advisory Services
Technical Assistance and Advisory Services
Whose lives are we trying to improve?
This intervention is designed to indirectly improve the lives of women and youth between the ages of 18 and 35 who are entrepreneurs or business owners across Tanzania. The intervention focuses on strengthening the capacity of Financial Service Providers (FSPs) to develop and deliver inclusive, affordable, and relevant financial solutions. By building institutional capacity within the financial sector, women and youth stand to benefit from enhanced access to financial products and services that better meet their unique needs and circumstances.
What challenges are they currently facing?
Women and youth MSMEs face systemic exclusion from financial markets due to the limited capability of financial institutions to serve these segments effectively. FSPs often lack the tools, systems, and market insights required to design inclusive financial products. There is minimal use of disaggregated data in product design, limited staff expertise in serving these target groups, and weak institutional readiness to support underserved clients. These barriers lead to the continued provision of generic, inappropriate financial services that fail to reach or serve women and youth effectively.
What Market System Change must take place to resolve the challenge?
To overcome these barriers, a shift is needed within financial service providers towards inclusive product development and gender-responsive service delivery. The financial system must integrate institutional incentives that promote inclusive finance, while also building sustainable internal capacities to generate and apply market insights. The widespread adoption of practices such as gender-disaggregated data collection, user-centric product design, and human-centered delivery channels must become standard across the sector.
How will FSDT intervene?
FSDT will deploy a structured Technical Assistance (TA) and Advisory Services programme targeting Tier II banks, microfinance institutions, and mobile money operators. The programme will offer two key streams of support. First, institution-specific technical assistance will include capacity building for product development, systems upgrades, staff training, and improvements in internal data systems. Second, cross-sectoral knowledge generation activities will produce industry research, insights, and tools to improve market-wide understanding of inclusive finance opportunities. The TA will include pilot testing, product design workshops, policy dialogues, and support for institutions adopting inclusive financial practices. FSDT will fund up to EUR 100,000 per institution, requiring at least 25% co-financing from participating FSPs.
What are we hoping to achieve through this intervention?
This intervention seeks to expand the number and quality of financial products and services available to underserved markets, particularly women and youth. FSPs will be equipped with the knowledge and resources needed to develop products and services that are relevant, accessible, and sustainable. The programme aims to increase the volume and uptake of inclusive financial services, promote innovation in product design, and strengthen partnerships across the financial ecosystem to reach underserved communities.
What lasting impact do we intend to achieve?
The intervention is expected to leave behind a stronger, more responsive financial sector with embedded practices for serving women and youth. Participating institutions will be better equipped to offer inclusive financial products beyond the life of the project, using the systems and capabilities developed through technical assistance. Over time, this will contribute to reduced exclusion, increased access to finance, and greater resilience among Tanzania’s most economically vulnerable entrepreneurs.
INTERVENTION PERIOD
2024 - 2027
FUNDED BY
Venture Capital Fund
The Venture Capital and Private Equity project aims to facilitate access to finance for women- and youth-led enterprises in Tanzania by establishing two targeted investment vehicles: a Venture Capital Fund (VCF) and Private Equity Fund (PEF). Implemented through a Public-Private Partnership (PPP) with an existing investment entity, the initiative seeks to address the financing gap faced by MSMEs at various stages of growth. The VCF will invest in promising early-stage start-ups with innovative business models and strong growth potential, also led by women or youth. At the same time, the PEF will provide growth capital to established, high-potential businesses led by women and youth, enabling them to scale operations and create jobs. By unlocking capital for underrepresented entrepreneurs, this initiative promotes inclusive economic growth and private sector resilience.
Venture Capital Fund
The Venture Capital Fund is an equity financing initiative under the Inclusive Finance for Growth of Women and Youth MSMEs program, designed to support start-ups and growth-stage MSMEs with high potential. Managed in partnership with CMSA and the Ministry of Finance, the fund will provide equity investments ranging from EUR 50,000 to 250,000 to help businesses scale, innovate, and create jobs.
Venture Capital Fund
Whose lives are we trying to improve?
This intervention aims to enhance the lives of women and youth entrepreneurs running start-up and growth-phase micro, small, and medium-sized enterprises (MSMEs) across Tanzania. These entrepreneurs often lead businesses in sectors like agribusiness, technology, green innovation, and digital services but face challenges in accessing long-term, growth-focused funding. By enabling access to equity finance, the intervention will open new pathways for business expansion and financial sector innovation.
What challenges are they currently facing?
Women- and youth-led MSMEs face significant barriers in securing equity investments, mainly due to the limited availability of risk capital, low investor interest driven by perceptions of high risk and low returns, a weak enabling environment, and a lack of equity instruments designed for early-stage and growth-focused enterprises. Furthermore, many of these businesses find it difficult to attract investors because they are not investor-ready.
What Market System Change must take place to resolve the challenge?
There is a need to develop and strengthen a functional, inclusive, and equitable investment ecosystem. This involves establishing a national venture capital fund that provides both equity and debt instruments to MSMEs, supported by a comprehensive legal and regulatory framework that facilitates the efficient operations of venture capital and private equity funds. It also includes creating credible investment vehicles and building investor confidence in women- and youth-led enterprises. Furthermore, the venture capital market must incorporate and offer technical assistance to ensure that early-stage businesses are prepared to access additional financing after exits.
How will FSDT intervene?
FSDT will collaborate with the Capital Markets and Securities Authority (CMSA) and the Ministry of Finance to establish a National Venture Capital Fund and hire an experienced fund manager to operate it. The Fund will be financed through government and development partner resources, as well as other local and international investors. FSDT will finance the technical design of the Fund, oversee its registration, recruit, and pay the Fund Manager, and facilitate stakeholder engagement and fundraising.
What are we hoping to achieve through this intervention?
The intervention aims to increase access to equity capital for high-potential, women and youth-led MSMEs and to expand the number of enterprises capable of attracting private sector investment. It will enable business growth and innovation in key sectors, enhance the capacity of enterprises to create jobs and wealth, and position Tanzania as a viable destination for inclusive venture capital investment.
What lasting impact do we intend to achieve?
The Venture Capital and Private Equity 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.
INTERVENTION PERIOD
2024 - 2027
FUNDED BY
Enhancing the Uptake and Usage of Digital Financial Services for Women and Youth through Digitization of Community Microfinance Groups (CMG) in Tanzania.
Whose Lives Are We Trying To Improve?
This project aims to digitize financial transactions of registered CMGs, focusing on transactions to benefit members, especially women and youth. Digitization promises increased transparency, efficiency, and access to diverse financial services. The digital solution will streamline transactions, broaden the scope of financial services and empower members with enhanced digital skills. Funds security is ensured through secure digital wallets, fostering trust and diversity of financial services for CMG members.
What challenges are they currently facing?
Women and youth in CMGs face challenges around lack of transparency, theft and limited access to diverse range of financial services. These challenges emanate from manual record keeping and informal ways of managing cash, stemming from limited digital literacy, lack of inter-operable mobile-enabled financial solutions, lack of standardized Know Your Customer (KYC) documents and limited coordination among stakeholders. As a result, CMG members are unable to garner the full breadth of the benefits of digital financial services.
What market system changes must take place to resolve the challenges?
The project aims to facilitate availability of inter-operable digital financial services for women and youth in CMGs through interested Financial Service Providers (FSPs). The project also aims to promote digital literacy and facilitate awareness and increased interest of CMGs to digitize their savings and loans transactions to achieve access and usage of diverse range of financial services.
How will FSDT intervene?
FSDT plays a pivotal role as a market facilitator in this project by convening various stakeholders such as the Bank of Tanzania (BOT), President’s Office-Reginal Administration and Local Government (PO-RALG), Local Government Authorities (LGA), Mobile Network Operators (MNOs), Banks, CMG promoters, and Community Based Trainers. This collaborative approach aims to enhance digitization of CMGs, promote financial inclusion—especially for women and youth. FSDT leads project implementation through data-driven insights, stakeholder engagement, testing, and monitoring. Also, FSDT ensures ongoing stakeholder engagement and alignment with the project goals through continuous strategic communication efforts.
What are we hoping to achieve through this intervention?
This project aims to impact a total of 25,000 women and youth, with 5,000 individuals (across 200 CMGs) targeted in phase one and 20,000 individuals (across 800 CMGs) in phase two. The project also expects 25,000 CMG members to adopt and utilize diverse range of digital financial services leveraging their digital financial transactions data, and three FSPs to develop, pilot, or scale tailored financial solutions catering to registered CMGs.
What developmental impact do we hope to see in the market?
Ultimately, we hope to see CMG members empowered and capacitated to demand and use a diverse range of financial services, including but not limited to insurance, payments, and mortgage. Such developments would improve the livelihoods, well-being, and empowerment of women and youth, fostering a brighter and more equitable future.
INTERVENTION PERIOD
PHASE 1 : OCTOBER 2023-JUNE 2024
PHASE 2: JULY 2024-JUNE 2025
FUNDED BY
Gender Collaborative Program (Gender Corpro)
FinClinic: An Evidence-driven Financial Solution and Policy Design Approach
Whose lives are we trying to improve?
FinClinic aims to improve the lives of women, youth, smallholder farmers in rural areas, as well as Micro, Small, and Medium Enterprises (MSMEs) through evidence-driven financial
solutions and policy design.
What challenges are they currently facing?
FSDT studies have highlighted challenges in the uptake of formal financial services by women and youth in Tanzania, despite the presence of targeted programs and products. These challenges include: limited awareness due to factors such as product features and distribution channels, as well as broader issues such as insufficient market research, poor understanding of the financial needs and lack of data disaggregation by sex and age among Financial Service Providers (FSPs).
What market system changes must take place to resolve the challenges?
To address the challenges, primary market system changes are crucial, including the development, piloting and scaling of gender and age-responsive financial solutions and policies for women and youth smallholder farmers and MSMEs. Secondly, increasing the number of FSPs offering gender – responsive solutions. Thirdly, efforts should focus on programs to enhance the confidence and capabilities of women and youth to access and utilize financial services. These measures can foster inclusivity in Tanzania’s Financial ecosystem, empowering marginalized groups and promoting economic participation.
How will FSDT intervene?
FinClinic involves several key steps aimed at fostering financial inclusion for women and youth in Tanzania. Initially, FSPs to respond to a call for proposals, expressing their interest in designing solutions tailored to these customer segments. Upon selection, FSPs sign a Memorandum of Understanding (MoU) with FSDT to pilot or scale these financial solutions. Through collaboration with FSDT, partner FSPs co-designa prototype, integrating financial literacy components. The most promising solution is then piloted by partner FSPs. Additionally, policymakers and regulators utilize FinClinic to refine existing policies and frameworks, thus contributing to a more inclusive financial landscape.
What are we hoping to achieve through this intervention?
The primary objectives of the FinClinic initiative are to increase the number of women and youth adopting gender-responsive financial products that cater to their basic needs and desires,. Additionally, FinClinic aims to increase the number of women and youth utillizing multiple categories of financial services provided through the project, and to enhance their willingness to recommend these services to others. Through engagement with policymakers and regulators, FinClinic also seeks to create a conducive environment for FSPs to effectively serve women and youth, contributing to broader financial inclusion efforts.
What developmental impact do we hope to see in the market?
Through FinClinic, we hope to empower women and youth by increasing their usage of formal financial channels, enabling them to make independent decisions over their income and build productive assets. We also hope to enhance their access to digital merchant payments and alternative financing models, ultimately improving their access to essential goods and services such as healthcare, housing, and education; thus, contributing to their overall well-being and empowerment.
FUNDED BY