Micro, Small, and Medium Entrepreneurs (MSMEs) in Tanzania are set to receive a significant boost in the form of Sh18.5 billion in government empowerment loans over the next two years. This development follows the signing of a two-year agreement between the government and NMB Bank, which took place in Dar es Salaam yesterday.
Representing NMB Bank at the agreement signing ceremony was its CEO, Ms. Ruth Zaipuna, while the government was represented by Dr. Seif Abdallah Shekalaghe, the Permanent Secretary in the Ministry of Community Development, Gender, Children, and Special Groups.
Dr. Gwajima, speaking before the signing ceremony, highlighted the government's commitment to expanding the reach of these loans to benefit more individuals. She emphasized that while Sh18.5 billion is a significant amount to start with, the government aims to increase this figure to ensure the sustainability of the loan program and its ability to reach more people.
The loans, according to Dr. Gwajima, are part of the government's broader initiative to empower specific groups and ensure that assistance reaches its intended beneficiaries. She explained that the funds will be disbursed annually, following the government's new approach and procedures for financing income-generating projects for special groups. Eligible beneficiaries are already undergoing registration, with special IDs issued to entrepreneurs.
Ms. Zaipuna, the CEO of NMB Bank, expressed her satisfaction with the agreement, noting that it underscores the bank's commitment to supporting the government's efforts to improve the business environment for all entrepreneurs, especially small-scale ones. She highlighted the bank's track record of supporting MSMEs, citing its disbursement of 129,540 loans valued at Sh2.03 trillion to entrepreneurs from 2020 to 2023.
The agreement with the Ministry is expected to further extend the bank's reach to more small-scale entrepreneurs across the country, providing them with the necessary financial support to grow their businesses.