Africa-Press – Tanzania. THE Bank of Tanzania (BoT) is laying the groundwork for a new Credit Guarantee Public Limited Company that will help small and medium-sized enterprises (SMEs) access loans more easily, in a move expected to stimulate business growth and strengthen the country’s economy.
BoT Governor Emmanuel Tutuba announced the plan during a meeting with heads of financial institutions at the central bank offices in Dar es Salaam.
He said the company will play a critical role in reducing the risk faced by lenders, allowing more entrepreneurs, especially small business owners, to qualify for financing.
Tutuba highlighted global success stories, pointing to Malaysia, which has operated a credit guarantee company for more than five decades.
He said Tanzania aims to adopt similar models to unlock the full potential of the SME sector, which remains central to job creation, poverty reduction, and innovation.
According to the Governor, the initiative is expected to accelerate the expansion of small businesses, create jobs, increase government revenue through taxes, and improve the economy’s capacity to withstand shocks.
He added that the new company will help open fresh investment opportunities and boost Tanzania’s competitiveness in the global market.
Speaking on behalf of commercial banks, Tanzania Bankers Association (TBA) Chairman and NBC Bank Chief Executive Officer, Theobald Nsabi, commended the government’s move.
He said banks are ready to cooperate with BoT in setting up the company and will continue supporting broader efforts to deepen growth in the financial sector.
Currently, credit guarantee services are provided through two schemes overseen by the central bank the Export Credit Guarantee Scheme (ECGS) and the SME Credit Guarantee Scheme (SME-CGS).
The establishment of the new company is expected to expand the scope and impact of these initiatives.
Senior officials from the Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE) also attended the meeting, reflecting wider support from across the financial ecosystem.
