Tanzania: Banks urged to simplify loan procedures for MSMEs
The government is asking banks and other financial institutions in Tanzania to ease lending procedures to facilitate the growth of Micro, Small and Medium-sized Enterprises (MSMEs) in the country.The government is asking banks and other financial institutions in Tanzania to ease lending procedures to facilitate the growth of Micro, Small and Medium-sized Enterprises (MSMEs) in the country.
Dr Mary Nagu,
Minister of State, Prime Minister's Office, Investment and Empowerment,
declared last Tuesday that
access to loans was a key hurdle to the growth of MSMEs in the country and that it was high time this was addressed. At a workshop organised jointly by the Tanzania Private Sector Foundation (TPSF) and the Financial Sector Deepening Trust (FSDT), she "call[ed] upon banks in the country to help in spearheading the development of this sector that is crucial to sustainable development".
She also said the government was collaborating with the private sector to set up the proper enabling environment, including
incentives for firms to formalise operations, to increase their competitiveness in terms of skills and technology, to respect international standards and to strengthen market linkages.
She added that "the role of MSMEs in the achievement of our economic development goals cannot be overemphasised".
The executive director of TPSF Godfrey Simbeye agreed and said
that should entrepreneurs in the country access financial services more easily, the economy would have a chance to progress at a better pace. "Our challenge to grow as a nation is contributed by lack of smooth and effective financial support to enterprises," he said, adding that banks have a big role to play in solving this.