SME Finance
In Tanzania, MSMEs contribute to 27% of the GDP, employing more than 5.2 million people. However, majority of MSMEs experience limited access to finance and effective use of financial products and services as major barriers to growth. The lack of access to finance by MSMEs attributes to Financial Services Providers’ strict requirements around KYC and formal registration, collateral, credit history and lack of MSME tailored products. SME Finance works with financial sector stakeholders to drive innovative solutions that will increase access and usage of financial products and services by underserved MSMEs. Our work focuses on Innovation and Solutions, Knowledge Exchange and Data, Thought Leadership and Convening, Policy and Regulatory change.
Innovation and Solutions
We work with financial institutions, technology companies, and non-bank financial institutions to identify new ideas that enhance access to and usage of finance for small businesses and help them grow. We support them to innovate and deliver products and services that will create positive and sustainable impact to MSMEs.
Knowledge exchange & Data
We work closely with relevant stakeholders in reducing knowledge gap facing the MSMEs subsector and increase financial literacy among MSMEs. We also work with our research team to provide data and evidence on MSMEs to financial institutions, policy makers, and other users.
Thought Leadership & Convening
We support local roundtables/forums, regional conferences, dialogues that bring together financial institutions, technology companies and policy-makers, other private sector players in sharing data, new insights, trends and finding solutions for MSMEs.
Policy and Regulatory change
We use our linkages with financial institutions and policy-makers to inform MSME financial needs and facilitate closer interaction between private and public sector players to help create a more conducive policy and regulatory environment for MSMEs.
Projects
Greenfield SME Banks
Intervention
Establishment of SME focused banks to stimulate the supply of SME products and services in the market
Partners
Access Bank
Advance Bank
Infrastructure and support services enhancement
Intervention
Supporting a microfinance organisation enhance its infrastructure and support services to meet the BOT requirements for deposit taking standard.
Partners
FINCA
SME Finance Industry Forum
Intervention
Set up of quarterly forum of SME Finance stakeholders, consultants and business development service organisations.
Partners
Financial institutions
Policy makers
SME Finance Innovation Challenge Fund
Intervention
Catalysing banks, other financial institutions and business service support organisations to develop innovative products/services for SMEs
Partners
Financial institutions
MSME Baseline Survey of 2010
Intervention
Financing the survey to understand the demand side of the MSMEs and the segments in which financial institutions could address or help FSDT develop tailored interventions.
Partners
Ministry of Industry and Trade
Enterprise Growth Market – EGM
Intervention
Extending support to the Capital Markets and Securities Authority and Dar es Salaam Stock Exchange to extend their services to SMEs and well research start-ups
Partners
Capital Markets and Securities Authority
Dar es Salaam Stock Exchange
In the next three to five years, SME Finance projects will concentrate around promoting cash-flow based lending, value chain financing and development of SME tailored credit scoring methods.