Tanzania: DCB allocates €3.5 million to support women entrepreneurs
The Dar es Salaam Commercial Bank (DCB) has set up a Sh8 billion (€3.5 million) credit facility to support 26,000 women entrepreneurs in the 2013/2014 financial year.The Dar es Salaam Commercial Bank (DCB) has set up a Sh8 billion (€3.5 million) credit facility to support 26,000 women entrepreneurs in the 2013/2014 financial year.
DCB Senior Branch Manager Haika Machaku told Tanzania Daily News that the DCB has already issued Sh6.1 billion in loans of a minimum of Sh50,000 to more than 18,000 women members of the Solidarity Group Landing (SGL).
This initiative comes a few days after the EIB and Bank of Africa announced that they will invest €14 million to support Tanzanian SMEs. It is part of recent efforts from the country's financial sector to improve the contribution of the banking sector to the economy, along with the launch of a credit reference system and a push to develop mobile financial services as well as agent banking.
Bank of Tanzania governor Benno Ndulu said in a recent report that the country's banking sector only accounted for 2.36 per cent of the economy in 2012, despite its improved stability.
He believes this situation "is partly due to the low level of access to finance by the most bankable population, whereas a rapid growth is being experienced in the financial system as a whole and in the banking sector in particular."
Benno Ndulu is optimistic that BoT's efforts should help the country reach
50 per cent
of financial inclusion by 2015.