Summary
·
The
European lender signed agreement to pump 270 million euros to unlock a new
credit line into CRDB Bank Plc, NMB Bank Plc, and KCB Bank
Dar es Salaam. Three major commercial banks - CRDB Bank Plc, KCB Bank Tanzania, and NMB Bank Plc - say they
would use part of the 540 million euros (Sh1.4 trillion) support from the European Investment Bank to fill the financing gap on small and medium-sized enterprises, start-ups, and women-owned or managed businesses.The three banks yesterday signed
separate agreements with the EIB yesterday totalling 270 million euros (Sh700
billion) to be spent to bankroll businesses in the agreed categories.
A significant part of the money, 170
million euros will be disbursed as credit to women businesses and the rest, 100
million euros will be channelled to companies in the blue economy.
Representatives of the three banks
said the EU financial support is vital in unlocking job creating opportunities
and in stimulating economic growth.
KCB Tanzania’s managing director Mr
Cosmas Kimario said the new credit line is even more significant due to its
long-term nature of five to 12 years as it will allow SMEs to spread out their
loan payments over a more manageable timeline and have the capacity to grow and
succeed. Moreover businesses will be granted a two year grace period before
starting repayments, Mr Kimario added.
“The timing is also excellent. We
need as much financial resources as we can get to fully recover from the
effects of Covid-19 pandemic,” he said.
The CRDB Bank would receive 150
million euros to loan out to its clients in the said categories, according to
Managing Director, Abdulmajid Nsekela.
“Having adequate access to credit is
essential for SMEs to growth. And when you talk of small and medium businesses
you talk of women, so the gender factor is appropriate here,” he said.
The Treasurer for NMB Bank Plc, Mr
Aziz Chacha, said his bank would get 100 million euros, which will be used to
supplement initiatives towards supporting women entrepreneurs.
“We should attribute this deal to
Tanzania’s good business environment and the country’s ability to attract
foreign capital and attracting new investors,” he said.
EIB vice president Thomas Östros
said this new financing facility will also be associated with technical
support.
“The new business financing
confirmed today in Dar es Salaam demonstrates the close cooperation between
Tanzania and European partners to ensure that Tanzanian companies can expand,
create skilled jobs, and explore new business opportunities in the years
ahead,” he said.
“The European Investment Bank is
pleased to return to Tanzania and confirm our largest ever support for targeted
investment by entrepreneurs and businesses across the country,” he added.
The signing of the agreement between
EIB and the three local banks yesterday marked the end of the two-day business
forum organized by the European Union in Dar es Salaam and which attracted the
participation of over a thousand individuals.
Gracing the closing ceremony
Zanzibar’s President Hussein Ali Mwinyi said Europeans should consider Tanzania
as a preferred investment destination, given its conducive business environment
and untapped investment opportunities. “The Government has put investment at
the forefront of its agenda and is committed to creating a competitive business
and investment climate for private sector development.”
“Through partnerships and
collaborations, we can transform the private sector to achieve the goal of an
inclusive and broad-based middle-income economy come 2025,” he said.
President Mwinyi said untapped
investment opportunities in Tanzania are in sectors such as agriculture, blue
economy, renewable energy, manufacturing, mining, oil and gas, construction,
transport and logistics, and financial services.
No comments :
Post a Comment