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Tanzania’s ambition to build an inclusive economy by 2050 will depend partly on how effectively small businesses can access affordable financing, bankers and policymakers have said.
Micro, Small and Medium Enterprises (MSMEs) have been identified as a key pillar of the Tanzania Development Vision 2050 and Zanzibar Development Vision 2050, given their contribution to trade, production, employment and household incomes.
The issue dominated discussions at the Tanzania Bankers Association (TBA) Research and Financial Inclusion Conference 2026, held in Kizimkazi, South Unguja, on September 3 and 4.
The conference brought together financial-sector players, government officials, regulators, researchers, academics and development partners to examine ways of improving financial inclusion and addressing barriers to finance, particularly for MSMEs.
Deputy Minister for Finance and Planning in the Revolutionary Government of Zanzibar, Dr Hamad Omar Bakari, said the country’s long-term development goals could not be achieved without strengthening the capacity of small businesses.
“The Tanzania Development Vision 2050 and the Zanzibar Development Vision 2050 place MSMEs at the heart of building an inclusive and prosperous nation with sustainable development,” he said.
Dr Bakari said economic growth needed to translate into wider opportunities for businesses and individuals, making the financial sector an important link between economic activity and access to opportunities.
For many MSMEs, access to finance remains critical to starting, maintaining and expanding their businesses.
Participants at the conference said affordable and appropriate financial services could enable small businesses to invest in equipment, increase production, employ more people and participate more effectively in the formal economy.
They also noted that financial inclusion should go beyond opening bank accounts or providing digital financial services. Businesses and individuals need products that meet their actual financing and risk-management needs.
The conference was held under the theme “Transforming MSME Financing for Sustainable Development: Policy Reforms, Innovation, and Opportunities.”
The theme reflected growing attention to the need for new approaches to financing businesses that often struggle to meet conventional lending requirements.
Participants discussed the changing role of technology in providing finance to small businesses, including mobile lending and other digital financial services.
They examined SME credit performance, regulatory frameworks and financing models for youth-led businesses, while also exploring how partnerships between banks, insurers, technology companies and government could improve access to finance.
The discussions highlighted the need to balance innovation with responsible lending and effective regulation as digital finance continues to expand.
The conference also provided a platform for researchers and financial-sector stakeholders to share evidence on the challenges affecting financial inclusion and MSME financing.
Participants said research should play a greater role in shaping financial-sector policies and identifying practical solutions to barriers faced by businesses seeking credit.
They argued that stronger coordination among policymakers, financial institutions, technology providers, insurers and businesses would help create an environment in which MSMEs can access capital, manage risks and adopt technology.
For Tanzania’s 2050 development ambitions, the challenge will be turning these policy discussions into financing opportunities that reach businesses across the country.
The conference was supported by Mastercard as the main sponsor, alongside other partners.
TBA said continued collaboration among government, regulators, banks, researchers, development partners and businesses would be important in developing sustainable solutions to the financing challenges facing MSMEs.