The EIB has signed an agreement with Bank of Africa Tanzania which will manage the training and lending programme across the country.
Speaking in Dar es Salaam yesterday after signing the deal, Technical Assistant for Projects to various EIB financial sector operations in East Africa, Michael Alcorn said the funding will support SMEs in East Africa in general and Tanzania, in particular develop skills for efficiency in production activities.
“European Investment Bank is working with 25 banks across East African countries including Bank of Africa Tanzania by providing technical assistance to SMEs and banks as well as training them on credit risk management,” Alcorn said.
“We are here to provide leadership capacity trainings to all senior management teams so as to improve skills,” he said.
On his part Managing Director of BoA, Ammish Owusu-Amoah lauding EIB’s support to his bank saying the training from EIB provided to their management staffs on capacity building will provide efficiency hence improve their services to SMEs which are the target.
“The training will enhance our staffs’ competence because AFC Consultants International GmbH who will provide the training on behalf of EIB will help improve our team’s skills.
The training will also see our services improve to effectively compete with more than 50 banks in Tanzania,” Amoah said. He noted that through the support, about 250 entrepreneurs from different regions will benefit.
The EIB funding will allow Bank of Africa Tanzania to reach more businesses in the country. The SMEs segments are BoA’s preferred target group in the market and of late more emphasis has been placed in areas with many SME such as Dar es Salaam, Arusha, Kilimanjaro, Mwanza, Morogoro, Mbeya and Kahama.
The European Union has a strong interest to promote equitable growth and job creation in Tanzania. The lending programme by the European Investment Bank and Bank of Africa offers a new opportunity to undertake improve the area.
It is expected that the programme will support investment by companies active across a broad range of sectors, such as agriculture, fishing, manufacturing, transport, tourism, health and education and is expected to help create hundreds of new jobs.
Loans will be managed by Bank of Africa branches across Tanzania and be provided to eligible companies in three major currencies including the shilling.
The EIB engagement with Bank of Africa Tanzania is part of a larger regional initiative to support private sector investment across seven countries in East Africa and represents the second partnership with a local bank in Tanzania through the East Africa Private Enterprise Finance Facility.