A significant financial boost for Tanzanian businesses has been announced, combining a €15 million grant from the European Union (EU) with up to €350 million in credit lines from the European Investment Bank (EIB).
This combined €365 million package aims to bolster Small and Medium-Sized Enterprises (SMEs) under the EU Global Gateway strategy, with a particular focus on women-led businesses and the blue economy sector.
Out of the €350 million, the EIB has already signed agreements worth €270 million with three banks: CRDB (€150 million), NMB (€100 million), and KCB Tanzania (€20 million). The remaining €80 million will be allocated to other financial institutions across Tanzania.
These financial intermediaries benefit from the EIB’s favorable financial terms, including longer tenures than are typically available in local markets.
Alongside the credit lines, EIB Global provides technical assistance to financial intermediaries and final beneficiaries to ensure successful project implementation, adding substantial value to the creation of sustainable enterprises.
The European Investment Bank Vice-President, Mr. Thomas Östros, and the Deputy Ambassador of the European Union to Tanzania, Mr. Emilio Rossetti, have formalized their commitment through a signed statement of intent.
Focus on Women and the Blue Economy
The financing package will prioritize women-led businesses and the blue economy sector, which face significant challenges in accessing finance.
This effort aligns with the Tanzanian Government’s priority sectors and Sustainable Development Goals, under the EU’s Global Gateway investment strategy.
Mr. Thomas Östros emphasized the importance of small businesses in driving economic development and innovation in Africa. He highlighted the EIB’s role in addressing financing gaps at various business stages, fostering an efficient entrepreneurial ecosystem.
Mr. Emilio Rossetti highlighted the joint efforts with the EIB to enhance SME access to finance and promote financial inclusion for underserved groups, such as startups, youth, and women-led businesses. He reiterated that this initiative is part of the EU’s Global Gateway investments for Africa, aiming to create sustainable jobs.
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Read more at: https://www.tanzaniainvest.com/finance/eu-eib-euro-365-million-smes-women-entrepreneurs-blue-economy and follow us on Twitter: https://twitter.com/TanzaniaInvest Facebook: https://facebook.com/TanzaniaInvest LinkedIn: https://www.linkedin.com/company/tanzaniainvest WhatsApp: https://www.whatsapp.com/channel/0029Va9IRDu9MF97fTdjRR2cA significant financial boost for Tanzanian businesses has been announced, combining a €15 million grant from the European Union (EU) with up to €350 million in credit lines from the European Investment Bank (EIB).
Read more at: https://www.tanzaniainvest.com/finance/eu-eib-euro-365-million-smes-women-entrepreneurs-blue-economy and follow us on Twitter: https://twitter.com/TanzaniaInvest Facebook: https://facebook.com/TanzaniaInvest LinkedIn: https://www.linkedin.com/company/tanzaniainvest WhatsApp: https://www.whatsapp.com/channel/0029Va9IRDu9MF97fTdjRR2c