On February 12, 2025, the Bank of Tanzania (BoT) organized a special seminar for the Parliamentary Committee on Budget in Dodoma.
The seminar aimed to educate committee members about how the BoT manages government-backed loan guarantee funds to support private sector growth.
The session was led by Sadiki Nyanzowa, the Manager of the Government Agency Services Department at BoT.
He explained in detail two key loan guarantee schemes: the Export Credit Guarantee Scheme (ECGS) and the Small and Medium Enterprises Credit Guarantee Scheme (SME-CGS).
The ECGS is designed to help Tanzanian businesses that export goods. It provides financial guarantees to support these businesses when they face challenges in securing loans.
The SME-CGS, on the other hand, targets small and medium-sized enterprises (SMEs) that may struggle to access loans due to lack of collateral. Both schemes are intended to help businesses with strong commercial potential but limited financial resources.
“The main goal of these funds is to support projects that are commercially viable but lack enough collateral to obtain loans from banks and financial institutions,” said Nyanzowa.
By doing so, these schemes aim to boost the private sector and contribute to the country’s economic growth.
The seminar also provided an opportunity for members of the Budget Committee, led by Hon. Oran Njeza, to ask questions and discuss the challenges entrepreneurs face when trying to secure loans. The committee members expressed concerns about the difficulties small businesses face in accessing credit.
Hon. Njeza said, “It is important to understand the challenges our entrepreneurs face so that we can make informed decisions that support their growth and development.”
BoT representatives took the opportunity to share the steps the bank is taking to improve these loan guarantee funds. They explained how the bank is working to ensure that the schemes are effective and benefit the intended recipients.
“This seminar is part of our ongoing efforts to ensure that key stakeholders have a clear understanding of how the loan guarantee system works,” Nyanzowa added.
The event underscored the importance of financial support for businesses, especially in the private sector. It also highlighted the role of the government and financial institutions in helping businesses thrive, which is essential for sustainable economic development in Tanzania.
By facilitating dialogue between BoT and the Budget Committee, the seminar helped strengthen collaboration between the government and financial institutions. The goal is to ensure that these loan guarantee funds continue to support the private sector effectively, ultimately leading to a more prosperous and inclusive economy.