DAR ES SALAAM: THE Bank of Tanzania (BoT) has begun consultations with key financial sector stakeholders on plans to establish a new credit guarantee company, to be known as ...
Tanzania Credit Guarantee PLC, aimed at strengthening access to finance and supporting private sector growth.The meeting, led by BoT’s Deputy Governor for Economic and Financial Policies, Yamungu Kayandabila, at the central bank’s offices in Dar es Salaam, brought together stakeholders from several institutions, including the Capital Markets and Securities Authority, Tanzania Insurance Regulatory Authority, insurance companies, collective investment schemes, pension funds, and the Tanzania Private Sector Foundation.
According to BoT, the initiative is designed to match the scale and pace required to implement the Tanzania Development Vision 2050, which seeks to strengthen the country’s economy and increase the role of the private sector in national development.
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The proposed company is also expected to separate the central bank’s regulatory responsibilities from the provision of credit guarantees, thereby eliminating potential conflicts of interest and improving operational efficiency. It will also encourage innovation and enhance the capacity of institutions to respond more quickly to market demands.
Currently, the central bank manages two credit guarantee schemes, the Export Credit Guarantee Scheme and the SME Credit Guarantee Scheme.
“The government established the schemes to guarantee loans issued by banks and financial institutions to borrowers with viable projects but limited collateral,” the Central Bank stated.
Additionally, the broader objective is to create a supportive environment for development projects, promote employment, boost foreign exchange earnings through exports and contribute to the growth of the national economy.
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