In a bid to bolster economic growth in Tanzania, CRDB Bank has announced a significant allocation of over 10 billion Tanzanian shillings towards providing loans to Tigopesa customers. This initiative aims to empower entrepreneurs and businesses, facilitating their expansion endeavors.
The CEO of CRDB Bank, Mr. Abdulmajid Nsekela, expressed optimism about the venture, highlighting that more than a million customers stand to benefit from this initiative. "We intend to serve Tigo customers who meet the requirements to help them invest in various economic activities," stated Mr. Nsekela during the signing ceremony of the agreement with Tigo Tanzania in Dar es Salaam.
The move comes in the wake of the FinScope Survey 2023 results, which revealed a notable increase in the level of access and utilization of formal financial services. According to the survey, the figures rose to 89 percent and 76 percent in 2023 from 86 percent and 65 percent in 2017, respectively, indicating a growing trend towards financial inclusion.
Under the terms of the agreement, eligible Tigopesa customers can access loans ranging from 500,000 to 2,000,000 Tanzanian shillings through the enhanced Tigo Nivushe service. This collaboration follows a successful three-month trial period, during which approximately 100,000 customers were reached, showcasing the feasibility and efficacy of the initiative.
Ms. Angelica Pesha, CEO of Tigopesa, emphasized the convenience and accessibility of the loans, noting that customers can access funds without the need for guarantors. "This collaboration is eliminating the common hassles associated with money borrowing, whereby borrowers will be able to access loans through their mobile phones," Ms. Pesha remarked, highlighting the simplicity and efficiency of the process.
The partnership between CRDB Bank and Tigopesa represents a significant step towards fostering entrepreneurship and economic development in Tanzania, providing vital financial support to businesses across the country. As access to formal financial services continues to expand, initiatives like these are poised to drive sustainable growth and prosperity in the region.