P-TZ-HA0-005

Project Details
ID: P-TZ-HA0-005 Name: ABT ACCESS BANK OF TANZANIA FAPA TA GRANT Status: Completed Country: Tanzania
Sector: Finance Approval date: 05-aoû-2009 Task Manager: LASZLO Edith, PISD2
Total cost: 424894.8
Currency: UAC
Source(s) of financing
FAPA: 424893.62
Implementing Agency: AccessBank Tanzania Ltd Location: DAR ES SALAAM

Description

The project objectives include the provision of a broad range of financial services to micro, small and medium-sized enterprises (MSME), as well as to other clients in the lower income strata. The core target group will be the growth-oriented in the upper micro and lower SME segments. When the ABT project is completed, it is expected to serve at least 24,000 low income micro-entrepreneurs with appropriate, affordable, and sustainable financial services. The MFIs outreach is expected to continue to grow from there. The project benefits include: i) far better credit accessibility to the poorer segment of population; ii) positive impact on employment and income generation and therefore poverty reduction; iii) mobilizing savings from the poorer segments of the population; iv) gradual integration of the informal sector into the formal sector; and v) providing real contribution to government's development strategy for promoting micro and small enterprises.

Benefits

The targeted beneficiaries of the overall project are the large segments of the population in Tanzania who are poor or low-income and who otherwise have no, little, or poor access to decent financial services

Rational

The ABT project is in line with Bank's Equity Investment Policy Guidelines. It is financially and economically viable with a satisfactory return on equity of 24.2 %, which is a primary criterion for justifying the project selection. In addition, the project is expected to: a)increase the proportion of the poor households and businesses that have access to quality financial services;b)stimulate product innovation aimed at the poor;c)promote the development of capital markets as well as entrepreneurship & MSMEs' growth in regional member countries;d)increase income and employment among the poor and low-income, and therefore poverty reduction;e)deepen the microfinance industry in terms of product quality, services offered, outreach, efficiency of systems and technology used, and innovative approach to making it commercially profitable; and f)encourage the integration of microfinance into their formal financial sector.