The Government of Tanzania is stepping up efforts to make it easier for citizens to access capital, introducing affordable loan schemes aimed at supporting small and medium-sized businesses and boosting economic growth.
Through the Ministry of Finance Tanzania, the initiative focuses on improving access to financing for entrepreneurs by offering loans with low interest rates and flexible conditions.
The move is expected to help businesses expand, create jobs, and contribute more to the national economy.
Speaking in Parliament in Dodoma, Deputy Minister for Finance Laurent Deogratius Luswetula said the government has introduced a system that allows the use of its resources as guarantees to support local borrowers.
Under the arrangement, small and medium-sized enterprises can access loans through NMB Bank Plc at an interest rate of seven percent per year, a move aimed at reducing the cost of borrowing and encouraging more people to invest in business activities.
The Deputy Minister was responding to a question from Msalala Member of Parliament Mabula Johnson Magangila, who had asked when the government would begin using its resources to help Tanzanian businesses qualify for loans.
Luswetula said the programme is designed to address key challenges faced by entrepreneurs, especially those who lack collateral.
By lowering financial barriers, the government aims to open up more opportunities for citizens to start or grow businesses.
He added that the Bank of Tanzania has been assigned to supervise Credit Guarantee Schemes, which provide support to borrowers with viable projects but limited security.
These schemes enable more Tanzanians to access loans and implement their business ideas.
For exporters, the government has also introduced the Export Credit Guarantee Scheme, while small businesses continue to benefit from the SME Credit Guarantee Scheme.
These programmes are intended to strengthen business capacity and expand access to regional and international markets.
The government says the overall goal is to simplify access to affordable credit, promote investment in productive sectors, and improve livelihoods for Tanzanians.
