EIB and Bank of Africa invest €14 million to support Tanzanian SMEs

Mar 10, 2014

The European Investment Bank (EIB) has agreed a new lending programme with the Bank of Africa (BoA) Tanzania designed to support small and medium-sized enterprises (SMEs) across the country.

The European Investment Bank (EIB) has agreed a new lending programme with the Bank of Africa (BoA) Tanzania designed to support small and medium-sized
enterprises
(SMEs) across the country.

The EIB will provide €7 million that will be matched by BoA Tanzania, and the sum is expected to support investment by companies active across a broad range of sectors, such as agriculture, fishing, manufacturing, transport, tourism, health and education.
European Investment Bank Vice-President Pim van Ballekom said
that
BoA Tanzania sees an opportunity in SME financing, particularly to address a "missing middle" which is due to SMEs' challenges accessing risk capital, which is often granted to large corporations or micro-enterprises.

"We believe that banks should play an important role to grow SMEs in Africa by financing their investment and thus enable them to create value," he said, quoted by Tanzania Daily
News.

He added that both banks "hope to see a transformation from consumption financing to investment financing hence through this process enable SMEs to become transparent and bring a large number of them to the formal sector."ADNFCR-2976-ID-801701615-ADNFCR