TIB UNLOCKS LONG-TERM CAPITAL TO FORMALIZE AND SCALE SMES IN TANZANIA

30bn long term Loan from EADB to Transform Tanzania’s SME Landscape.

Tanzania East africa Finance Smes transformation Interst rate.
TIB Development Bank Secures 30 billion shillings from the East African Development Bank (EADB) to Finance SMEs
TIB Development Bank Secures 30 billion shillings from the East African Development Bank (EADB) to Finance SMEs


In a strategic push to formalize and scale Tanzania’s informal businesses, TIB Development Bank has secured a 30 billion shillings soft loan from the East African Development Bank (EADB) to finance Small and Medium Enterprises (SMEs) at affordable interest rates, with flexible repayment terms of up to 15 years.

The funding designed to deliver high-impact financing solutions targets SMEs engaged in key sectors, including agri-processing, manufacturing, extractives, energy, tourism, education, health, and ICT. Loan packages will start at 200 million shillings, offering businesses the capital muscle to move beyond subsistence operations.

Speaking at the signing ceremony, TIB’s Acting Director of Planning and Business Development, Mr. Joseph Chilambo, emphasized that the initiative is geared toward bridging a critical financing gap that continues to restrict SME growth.

“We believe that providing SMEs with substantial seed capital will enable them to execute their innovative projects more effectively than giving them small amounts,” Chilambo noted.

The financing model is structured to drive formalization of enterprises, particularly those operating on the margins of the economy. “The ultimate goal is to see more informal businesses across the country transition into the formal sector,” he added.

TIB Acting Managing Director, Ms. Lilian Mbassy, highlighted the bank’s track record in development financing, recalling a previous 53 billion shilling loan a decade ago that catalyzed industrial ventures in Kagera and Mwanza regions.

EADB’s Acting Director General, Mr. Benard Mono, underscored the regional intent of the loan. “Our focus is impact,” he said.

EADB Chairman and Tanzania’s Commissioner for Financial Sector Development, Dr. Charles Mwamwaja, urged the private sector to leverage these funding windows. “The private sector should regard EADB as their partner in accessing financial resources,” he said. 

Founded in 1970 by an Act of Parliament, TIB remains Tanzania’s largest development finance institution, playing a pivotal role in funding large-scale national projects and now, SME transformation.

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