Tanzania: PASS, Bank partner on credit issuance
The partnership is aimed at boosting lending to SMEs through a Credit Guarantee Fund.Private Agricultural Sector Support (PASS) Trust and Mkombozi Commercial Bank Plc have partnered on credit issuance with the aim of boosting lending to small and medium enterprises (SMEs) in agro-processing. According to the terms of the partnership which was signed in Dar es Salaam yesterday, a Credit Guarantee Fund (CGF) will be established by PASS, enabling Mkombozi Bank issue loans from its funds to qualified borrowers. In his speech after signing the partnership, the Managing Director of PASS, Nicomed Bohay said, "we are delighted by the signing of this deal, it will amplify our efforts to reach as many small and medium sized entrepreneurs in the agriculture sector as possible." Functioning as a service provider between financial and agriculture sectors over the years, PASS has guaranteed over 398.7bn/- loans to the sector, with 95 percent recovery rate. Prior to the new agreement with Mkombozi Bank, PASS has had similar agreements with 10 other banks including Tanzania Agricultural Development Bank, National Microfinance Bank, Akiba Commercial Bank, and Exim Bank, among others. For 2017, PASS projects to guarantee loans totalling 114bn/- to 345,000 entrepreneurs in the agricultural sector across Tanzania.