A US investment facility has extended financial support of USD 10m to a local bank of Tanzania to help boost the SME sector. BancABC has received this 10-year loan from World Business Capital, Inc (WBC) so as to support the SMEs’ cause in Tanzania. Guarantee for the WBC facility is provided by ‘Overseas Private Investment Corporation’ (OPIC) – an investment support arm for private sector of the US government.
Douglas Munats, CEO of BancABC, says, “OPIC-supported funding will put BancABC Tanzania in a strong position to support the SMEs sector in Tanzania.” This is a unique opportunity for Tanzanian SMEs that are in need of financial support. The WBC/OPIC & BancABC partnership is a vote of confidence for the economy of Tanzania.
The long term requirements of SMEs are met with this funding. This support came after government and stakeholders have worked hard to help SMEs overcome many operational constraints that include capital deficit, knowledge and business skills. Redressing financial constraints and addressing SME-focused credit schemes have remained the prime concern of government and stake-holders for several years now. The announcement of this recent financial boost is an additional initiative to fulfill capital shortages of SMEs.
Through OPIC funding, BancABC will be able to provide SMEs access to affordable capital. This will encourage Tanzanian entrepreneurs to run businesses. As a result vibrant SMEs will flourish and they will lead to the growth of a strong economy, generate employment and improve Tanzanians’ standard of living.
Israel Chasosa, Managing director at BancABC, says, “With this loan, the bank expects to provide support to a number of SMEs in Tanzania and we are sure that the lives of thousands of Tanzanians will be improved through job creation.”
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to