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Banks in Tanzania urged to Soften loans to boost SMEs

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Banks Tanzania loans boost SMEs
Jenista Mhagama, The Minister of State in the Prime Minister's Office responsible for Policy, Parliamentary Affairs, Labour, and Disabled

Financial Institutions in the country should have a window for supporting small and medium entrepreneurs through loan provision under minimum conditions for them to easily meet in order to support the national’s social economic empowerment, a cabinet minister has said.

Closing a symposium for financial institutions and empowerment of small entrepreneurs in Dar es Salaam, Jenista Mhagama, The Minister of State in the Prime Minister’s Office responsible for Policy, Parliamentary Affairs, Labour, and Disabled, said that the small entrepreneurs should be treated differently from large traders in the provision of loans.

“We request financial institutions and banks to support small entrepreneurs in a special way as they are determined to develop themselves economically. You should make a simpler way of taking them on board,” he noted.

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Mhagama urged the financial sector to minimize collateral or securities and make them friendly to small entrepreneurs who, most of them lack title deeds, saying access to capital and training were very important towards knowledge and skills, which will help them develop and grow their business.