DAR ES SALAAM — Access to finance remains a significant challenge for businesses across Tanzania’s fisheries value chain, potentially limiting investment in equipment, processing, storage, and distribution.
A behavioural study highlighted by Financial Sector Deepening Tanzania found that 47% of surveyed fisheries operators had never borrowed. The findings also indicated that 91% of respondents saved, 82% kept financial records and 97% had access to mobile phones, suggesting that many operators already have practices that could support engagement with financial institutions.
The financing gap does not necessarily mean that businesses are unwilling to borrow. Challenges identified in the study included limited readiness to borrow, financial products that do not match business needs, and lenders’ perceptions of risk. Irregular income, limited collateral and the difficulty of assessing small informal businesses can also complicate access to suitable financing.
Better-designed financial products could help viable fisheries businesses invest in cold storage, processing equipment, transport and improved handling practices. Digital records and mobile-based services may also help financial institutions understand businesses’ transactions and repayment capacity.
For Tanzania, improving access to appropriate finance could support activity across the wider fisheries value chain, from fishers and traders to processors and distributors. The opportunity lies in matching financing to the realities of these businesses while ensuring that borrowing remains affordable and sustainable.
