AfDB to help Tanzanian microfinance development
The African Development Bank (AfDB) is aiming to bridge the demand-supply gap for microfinance options in Tanzania.The African Development Bank (AfDB) is aiming to bridge the demand-supply gap for microfinance options in Tanzania.
A technical assistance grant of $660,000 (£412,486), already signed with Access Bank Tanzania (ABT), is set to establish an organisation to help small and medium-sized businesses access a wider range of products. It was made possible via the Fund for African Private Sector Assistance (FAPA) - part of an initiative between the AfDB and Japan, reports the East African.
Microfinance regulations in Tanzania were first approved five years ago, but because services are still an obstacle for the nation, combating poverty and stagnated growth is difficult. However, this development is poised to change that.
FAPA and ABT will collaborate for part of the deal to help build the institution's capacity in its first few years. The former will pay for a long-term credit advisor and experts to help in the short-term, eventually being replaced by trained employees.
AfDB resident representative Dr Sipho S Moyo is quoted by the publication as saying that "in the long term, the initiative's contribution towards poverty reduction in the country cannot be overstated".