Small businesses and women entrepreneurs could gain easier access to bank loans under a new partnership between the Bank of Tanzania (BoT) and the International Finance Corporation (IFC) aimed at changing how lenders assess borrowers.
The two institutions yesterday signed a memorandum of understanding (MoU) to promote the use of alternative data in credit assessments, potentially allowing financial institutions to consider information beyond traditional credit histories when deciding whether to lend.
The move could benefit small and medium-sized enterprises (SMEs) that struggle to access formal credit because they lack sufficient collateral, established credit records or other requirements traditionally used by banks to assess borrowers.
BoT Governor Emmanuel Tutuba said the partnership was timely as Tanzania implements its National Development Vision 2050, which places a major role on the private sector in driving economic growth.
“This has come at the right time because we have recently started implementing the National Development Vision 2050, whose goal is to build a strong, inclusive and competitive economy expected to reach a value of $1 trillion,” Mr Tutuba said.
He said about 70 percent of the success of the vision would depend on the contribution of the private sector, making access to finance an important part of the country's development agenda.
“We expect strong cooperation and contribution from IFC in achieving this ambition, particularly considering that 70 percent of this success depends on the contribution of the private sector,” he said.
The agreement was signed at the BoT offices in Dar es Salaam on September 21, 2026.
Alternative data can give lenders additional information when assessing a potential borrower, particularly businesses that may have limited conventional credit histories.
Its wider use could therefore help financial institutions identify creditworthy businesses that might otherwise struggle to qualify for loans.
For women-owned businesses, the partnership specifically seeks to address barriers that have limited access to financial services and business capital.
IFC Eastern Africa Regional Director Mary-Jean Moyo said the initiative would expand financial access for entrepreneurs and small businesses, particularly those owned by women.
She said greater access to finance would create opportunities for businesses to expand and generate more jobs.
“The partnership demonstrates IFC's commitment to supporting private-sector development and stimulating investment in Tanzania,” Ms Moyo said.
She described Tanzania as an important East African hub and a strategic market for IFC, saying the organisation's regional leadership presence in Dar es Salaam reflected its commitment to increasing investment and strengthening the private sector.
Mr Tutuba said the government would continue improving the business and investment environment to enable participants in the financial sector to take advantage of available opportunities.
For SMEs, improved access to credit could provide financing for working capital, equipment, expansion and other business needs, while helping more enterprises participate in the formal economy.
The BoT-IFC partnership therefore puts access to better credit assessment tools at the centre of efforts to expand financing for businesses that have traditionally been underserved by the formal financial system.