Bank of Tanzania set to establish credit guarantee firm to boost SME Financing

BoT Governor, Emmanuel Tutuba, announced the plan on December 8 during a meeting with leaders of financial institutions at the central bank’s headquarters in Dar es Salaam.

Mr Tutuba said the new company will help reduce lending risks for financial institutions, enabling more entrepreneurs, especially small business owners, to qualify for loans. He cited international examples, noting Malaysia’s five decades of success with a similar credit guarantee system, and highlighted Tanzania’s ambition to replicate such progress to unlock the full potential of its SME sector.

“The initiative is expected to accelerate the growth of small businesses, generate jobs, increase government revenue, and enhance the economy’s resilience to external shocks,” he said. He added that the company is also projected to attract new investments and strengthen Tanzania’s competitiveness in the global market.

Tanzania Bankers Association (TBA) Chairman and NBC Bank CEO, Theobald Nsabi, welcomed the government’s efforts, saying commercial banks stand ready to collaborate with the BoT in establishing the company and continue supporting broader financial sector growth.

Currently, credit guarantee services in the country are offered through the Export Credit Guarantee Scheme (ECGS) and the SME Credit Guarantee Scheme (SME-CGS), both overseen by the central bank. The creation of the new company is expected to widen the reach and impact of these schemes.

The meeting was also attended by senior representatives from the Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE), underscoring the broad support for the initiative across Tanzania’s financial ecosystem.