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African Development Bank supports Tanzanian entrepreneurs with loan facility

13-Feb-2018
© AfDB / Aurélien Gillier

Context

Tanzania has seen significant economic growth in recent years, thanks in part to support from the African Development Bank. The Small Entrepreneurs Loan Facility (SELF) financed by the Bank has provided a boost to the country’s rural entrepreneurs and has contributed to reducing poverty in the country, creating jobs and improving lives. The loan facility provides US $29 million support to entrepreneurs.

Key facts:

Loan amount: US $29 million

Approval date: May 10, 2010

Date of last disbursement: December 31, 2015

Beneficiaries: Rural entrepreneurs through the Government of Tanzania

Objectives

The overall goal of the Small Entrepreneurs Loan Facility (SELF) project is to contribute to reducing poverty in Tanzania. The objective of the project is to improve access by the poor, especially in rural areas, to financial services, and to enable them engage in viable income-generating activities.

The Impacts

Capacity building training provided to 16,720 people: 

4,499 Micro Finance Institutions (MFI) personnel

11,619 final beneficiaries 518 district cooperation officers and 84 credit managers

Loans provided to 105,788 beneficiaries through 432 MFIs (250 located in rural areas, 60 in peri-urban and 122 in urban areas.):

46,547 men (43%) 59,241 women (56%)

The project covers 101 districts out of targeted 141 districts with loan services (by June 2015)

Capacity of MFIs enhanced

Micro Finance Institutions graduated to intermediary and advanced institutions, which are growing and able to borrow from commercial sources.

Job creation

227,600 full-time jobs (new jobs and business owners)

408,096 seasonal or casual job opportunities about 44.3% of jobs created for women

Improved livelihoods

Increased incomes for entrepreneurs have been translated to:

social and livelihood improvements

better dwellings, nutrition

asset acquisition education and health support to children and other family members

Sustainability

SELF was transformed into a corporate entity called the Small Entrepreneurs Loan Facility Microfinance Fund.

Resources

African Development Bank supports Tanzanian entrepreneurs with loan facility

Tanzania - Country results brief 2017 (5.33 MB)

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