Tanzania: Bank Sets Aside $5 Million to Lend to Informal Sector
Wednesday, August 23, 2006
Standard Chartered Bank Tanzania will set aside $5 million to assist Tanzania’s small and medium firms. Excerpt: Standard Chartered Bank Tanzania will set aside $5 million to assist Tanzania’s small and medium firms.
The chief executive Hemen Shah last week told The EastAfrican that the institution had signed an agreement with PRIDE Tanzania, a small micro-provident fund, to finance the project.
He said the bank’s entry into the micro-lending sector signifies its confidence in the development of the sector.
“Our lending rates to the micro finance sector are very competitive. We take into consideration a number of factors ranging from the amount borrowed to the credit risk associated with the transaction,” he said.
According to Mr Shah, micro finance is a specialised sector that requires special skills in terms of loan administration and follow-up of projects.
“The bank has started with PRIDE Tanzania, but we are discussing with other organisations with whom we can co-operate in a similar programme,” he said.
The customer segments that the bank is targeting are large corporate, medium corporate, Small and Medium Enterprises (SMEs), microfinance and individuals. The bank is a subsidiary of the UK based Standard Chartered International Bank, which focuses on the emerging markets of Asia, Africa, the Middle East and Latin America.