The International Finance Corporation and the Bank of Tanzania have signed a cooperation agreement to improve Tanzania's credit reporting system and increase access to finance for small and medium-sized enterprises. The initiative aims to support the growth of these businesses, particularly those owned by women and young people. This partnership reflects the commitment of both organizations to fostering economic development in Tanzania.
Under the agreement, the IFC will provide technical expertise to strengthen credit information systems and explore the use of alternative data in credit assessments. This will enable lenders to make more informed decisions and provide more credit to small and medium-sized enterprises. The IFC's support will help to address the challenges faced by these businesses in accessing finance.
The agreement was welcomed by Mary-Jean Moyo, IFC Division Director for Tanzania, Burundi, the Democratic Republic of Congo, Malawi, Zambia, and Zimbabwe. She noted that Tanzania is a strategic market for the IFC and a gateway to Eastern Africa. The IFC has a long-term commitment to increasing investment and supporting private sector growth in the region.
Emmanuel Mpawe Tutuba, Governor of the Bank of Tanzania, also expressed his commitment to fostering a stable, inclusive, and innovative financial system that supports sustainable economic growth. He noted that the partnership with the IFC will help to strengthen the credit reporting environment and improve access to financial services for individuals and businesses across Tanzania.
According to the Bank of Tanzania's latest Annual Financial Inclusion Report for 2025, the financial inclusion of micro, small, and medium-sized enterprises recorded mixed results. The value of MSME loans stood at TZS 10,409.1 billion by the end of the year. This represents a significant increase, but there is still more work to be done to support the growth of these businesses.
The report also noted that the number of MSME loan accounts increased by 104.9% to 578,692. This increase was associated with continued business formalization initiatives and the expansion of microfinance services. However, many MSME operators continue to use personal credit facilities to finance business activities due to collateral challenges.
The IFC has previously supported credit reporting in Tanzania, working with the Bank of Tanzania, licensed credit bureaus, lenders, and other stakeholders to improve credit information sharing and lending decisions. The IFC's continued support for credit reporting and financial inclusion initiatives is expected to have a positive impact on the growth of small and medium-sized enterprises in Tanzania.
Key points
- The IFC and Bank of Tanzania have partnered to strengthen Tanzania's credit reporting system and expand access to finance for small and medium-sized enterprises.
- The initiative aims to support the growth of MSMEs, particularly those owned by women and young people.
- The partnership builds on the IFC's previous support for credit reporting in Tanzania.
