Improving financial literacy 'could improve access to business loans'

Sep 09, 2011

Improving financial literacy could make it easier for individuals in Tanzania to access finance for their businesses it has been suggested.

Improving financial literacy could make it easier for individuals in Tanzania to access finance for their businesses, it has been suggested.

Charles Chavalah, Project Manager at non-governmental group UHIKI, discussed the issue at a ceremony held yesterday (September 9th) to deliver a donation of motorcyles to members of the organisation, Daily News reports.

He explained that although many Tanzanians want to apply for business loans, they do not know how to do so.

Similarly, they lack the knowledge to properly manage the money when they receive it and require further education on the matter, Mr Chavalah continued.

His comments were supported by Microfinance Advisor at Plan International Tanzania - the organisation that donated the bikes - Stella Tungaraza.

She stated that support must be offered to those on a low income "so that they can start their own businesses and at the same time be in a position to change their livelihoods".

An increase in financial literacy could encourage enterprises to take advantage of a Sh9.6 billion (€71 million) fund recently given to Kenya Commercial Bank by the International Finance Corporation to increase lending to firms in Tanzania, Sudan, Rwanda and Uganda.ADNFCR-2976-ID-800724835-ADNFCR