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Tanzania: ATI urges entrepreneurs to use insurance cover funds to improve their access to finance

30.05.2014

Entrepreneurs in Tanzania were urged to effectively use insurance cover by the African Trade Insurance Agency (ATI) to access alternative sources of funding and expand their investments.

Entrepreneurs in Tanzania were urged to effectively use insurance cover by the African Trade Insurance Agency (ATI) to access alternative sources of funding and expand their investments.

Vice-President Mohamed Gharib Bilal said this week during the 14th ATI Annual General Meeting in Dar es Salaam that with the rapid economic expansion, donor funding is becoming insufficient to meet investment needs, while domestic revenue is insufficient to cope with the financing requirements, Tanzania Daily News reports.

The Deputy Minister for Finance and Economic Affairs Adam Malima said ATI had a strong impact on the country's financial services, where banks have been trying to find solutions to the challenge of increasing lending to small and medium-sized companies.

"Although SMEs are vital to the country's economy, they have been lacking the necessary collateral and experience that would normally be required to secure a traditional bank loan," he said.

Ten countries, including Tanzania, created ATI in 2001 to fill a market gap in trade and investment risk mitigation in Africa, as well as to address the misconception of most international lenders that the continent was unsafe for lending due to political and trade risks. The ATI essentially provides insurance against non-honouring of sovereign obligations.ADNFCR-2976-ID-801724273-ADNFCR