Absa Bank Tanzania and Knauf Gypsum Tanzania have signed a Memorandum of Understanding (MoU) to launch a Distributor Financing Programme aimed at expanding access to finance for Knauf distributors and strengthening the company’s supply chain across Tanzania.
The partnership is expected to provide eligible distributors within Knauf’s network with tailored financing solutions to support inventory purchases, working capital needs and business expansion.
The initiative is projected to bring between 30 and 40 distributors into Absa Bank Tanzania’s financing portfolio, subject to the bank’s credit assessment process and approved lending limits.
The agreement highlights growing collaboration between financial institutions and businesses to improve access to capital, strengthen value chains and support private sector-led economic growth.
Speaking at the signing ceremony held at Knauf Gypsum Tanzania’s headquarters in Dar es Salaam, Absa Bank Tanzania Managing Director Obedi Laiser said the partnership demonstrates the importance of ecosystem banking in helping businesses grow.
“This partnership demonstrates the power of ecosystem banking in supporting business growth and creating shared value. By extending financing solutions to distributors within Knauf's network, we are helping businesses build capacity, improve efficiency and seize growth opportunities,” Mr Laiser said.
He added that Absa remains committed to providing financial solutions that empower businesses and contribute to economic development across Africa.
The programme will enable participating distributors to access funding that can improve their ability to maintain stock levels, respond to market demand and expand their operations, strengthening the availability of Knauf products in Tanzania’s construction market.
Knauf Gypsum Tanzania Managing Director Christoforos Stamoulakatos said the partnership would play an important role in supporting the company’s distribution network and enhancing service delivery to customers.
“Our distributors are a critical part of our growth journey and our ability to serve customers across Tanzania. Through this partnership with Absa Bank Tanzania, we are creating opportunities for our distributors to access financial solutions that can support their growth and strengthen their ability to meet increasing market demand,” he said.
The collaboration reflects Absa Bank Tanzania’s focus on ecosystem banking, an approach designed to provide financial solutions across entire business value chains, helping companies, suppliers and distributors unlock new growth opportunities.
Knauf, a key player in Tanzania’s construction sector, continues to work with partners across its value chain to improve access to quality building materials and support industry growth.
The new financing programme is expected to deepen cooperation between the two organisations while creating more opportunities for businesses linked to Knauf’s operations.
The signing ceremony brought together senior executives from Absa Bank Tanzania and Knauf Gypsum Tanzania, distributors, business partners and members of the media.
