The International Finance Corporation (IFC) and the Bank of Tanzania (BoT) have signed an agreement aimed at improving access to finance for small and medium-sized enterprises (SMEs), including businesses owned by women and young entrepreneurs.
Under the cooperation agreement, IFC will provide technical support to strengthen Tanzania’s credit information system and assess the use of alternative data in credit assessments.
The initiative is expected to give financial institutions more information when evaluating borrowers, potentially making it easier for businesses with limited traditional credit histories to access financing.
For SMEs, which often face difficulties meeting conventional lending requirements, stronger credit reporting could help reduce information gaps between businesses and lenders.
IFC Division Director for Tanzania, Burundi, the Democratic Republic of Congo, Malawi, Zambia and Zimbabwe Mary-Jean Moyo said the agreement would help expand access to financial services and create greater economic opportunities.
The initiative comes as Tanzania seeks to deepen private-sector participation and improve financing for businesses that contribute to employment and economic activity.
Greater use of credit information and alternative data could also help banks better assess the risk of lending to smaller businesses, potentially supporting the expansion of SME lending.
For Tanzania’s financial sector, the agreement represents another step towards building a more inclusive credit market where businesses can use stronger financial records to improve their access to capital.
