The Bank of Tanzania (BoT) has announced plans to establish a Credit Guarantee Corporation aimed at expanding access to loans for businesses, creating jobs, and strengthening the private sector, supporting the country’s National Development Vision 2050.
BoT Governor Emmanuel Tutuba made the announcement on March 30, 2026, at the bank’s regional office during the Second Annual Meeting of Banks and Financial Institution Leaders.
He said the company will address the challenge of limited collateral for loan applicants, particularly entrepreneurs without assets to pledge.
Governor Tutuba said development partners, including the World Bank, have pledged support for the initiative, with an expected $150 million in concessional loans available through the government.
“The company will formalize businesses, help entrepreneurs prepare project proposals that meet financial standards, and monitor their ability to repay loans,” he said.
The corporation will provide guarantees to applicants without movable or immovable assets, enabling broader participation in economic activities.
BoT is also reviewing legal frameworks to simplify loan access using alternative documentation, including academic certificates, to support young graduates who struggle to secure loans due to lack of collateral.
The company’s structure will include specialized departments to issue guarantees and assist with project proposal preparation.
Entrepreneurs whose proposals do not meet standards will receive professional guidance to turn ideas into viable, bankable projects.
The corporation will operate independently, while BoT retains oversight and licensing authority, following principles of good governance and sustainable development.
BoT is also expanding financial literacy programs through its college in Mwanza, providing both formal and non-formal curricula.
Governor Tutuba said the programs are already benefiting women outside the formal education system, and more institutions are sending staff, especially women, for training. BoT continues to develop strategies to ensure financial education reaches more Tanzanians nationwide.
