In a country like Tanzania, the contribution of Micro Small and Medium Scale Enterprises accounts for about twenty-seven percentage of the total Gross Domestic Product thereby recruiting and employing more than 5.2 million people across the country. However, most of the Micro Small and Medium Scale Enterprises have no access to both the finance products as well as financial services. These two major factors are a major hindrance to the growth of the financial sector in Tanzania.Role of Government of Tanzania in SME finance
The Government of Tanzania advised some of the top lending institutions in Tanzania to join hands with the small-scale entrepreneurs, which help in the creation of more job opportunities and combat poverty. One of the major constraints faced by the Small and Medium Scale Enterprises is the limited access to financial products as well as financial services in Tanzania.
The Financial Sector Deepening Trust is currently focusing on latest innovations along with knowledge exchange and data and regulatory policies.
According to a baseline report submitted by the National Micro Small and Medium Enterprises, out of 2.7 million Small and Medium Scale Enterprises, only 6.5% were allowed access to the financial products and services in Tanzania in the year 2010. It was proclaimed by Ms Janet Mbene who is the Deputy Minister for Industry and Trade during the official launch of a workshop at Dar es Salaam, which enabled the women entrepreneurs of Tanzania an easy access to Finance industry.What are the latest innovations and solutions in SME finance?
The Financial Sector Deepening Trust is currently working with some of the leading financial institutions, IT industries and various other non-profit organizations to develop new ideas thereby enabling small and Medium Scale Enterprises easy access to avail both financial products and services and will help to the enhance their business.
The Financial Sector Deepening Trust offers the necessary assistance and support to deliver financial products as well as financial services with the objective to create a positive impact on Small and Medium Scale Enterprises.What is knowledge exchange and data?
The Financial Sector Deepening Trust is also working with some of the leading stakeholders with the purpose of boosting financial literacy among the Small and Medium Scale Enterprises of Tanzania. The trust is actively working with their internal research team to supply relevant data and information to the Small and Medium Scale Enterprises with respect to financial institutions and policymakers.