ABSA BANK LAUNCHES MERCHANT FINANCING SOLUTION TO EMPOWER BUSINESS GROWTH WITHOUT COLLATERAL

Absa Bank Tanzania Head of Products & Channels, Business Banking, Jane Kalumuna (third left), together with others from left; Brand, Marketing & Communications Manager, Beda Biswalo, SME Relationship Manager and Acting Head of SME, Scolastica Dominic, and Point of Sale (POS) Sales Manager, Edward Edwine, display POS machines as a symbol of the official launch of Absa’s merchant financing solution aimed at supporting the growth of small and medium-sized businesses using Absa POS machines for transactions. The new solution removes one of the biggest barriers to funding, the requirement for collateral.

Dar es Salaam, 26 May 2026: Absa Bank Tanzania has launched Absa Merchant Financing, a new short-term financing solution aimed at helping businesses grow by providing access to funding without the need for collateral.

The innovative facility is designed for merchants actively involved in trading goods and services, including wholesalers, sub-wholesalers, dealers, and retailers using Absa Point-of-Sale (POS) machines and other digital payment channels.

The financing solution addresses a long-standing challenge facing many businesses that generate strong daily sales but struggle to access credit due to traditional collateral requirements. Instead of relying on physical assets, Absa Merchant Financing uses merchants’ POS transaction history to assess borrowing capacity and determine financing eligibility.

According to the bank, the product transforms transaction data from being simply a record of past activity into a tool for unlocking future business opportunities by enabling merchants to access funding that reflects their actual business performance.

Speaking during the launch, Head of Products & Channels, Business Banking at Absa Bank Tanzania, Jane Kalumuna, said the new solution is intended to remove barriers that have historically limited access to finance for many growing businesses.

“For far too long, businesses with clear, demonstrable cashflow have found themselves excluded from financing simply because they lack traditional collateral. With Absa Merchant Financing, we are rewriting that story,” she said.

“We are recognising and rewarding real business performance, enabling our customers to access the funding they deserve based on how their businesses actually operate and grow.”

She added that the solution simplifies the lending process by eliminating the need for businesses to pledge assets or undergo lengthy procedures, noting that daily sales performance already demonstrates a merchant’s growth potential.

Key Features of Absa Merchant Financing

The newly launched financing solution comes with several features designed to support business continuity and expansion, including:

• Unsecured lending with no collateral requirements
• Short-term financing for immediate business needs
• Financing limits based on POS transaction history
• Simplified and fast access to funding
• Flexible banking solutions tailored to merchant needs
• Support for improved balance sheet management and operational efficiency

Brand, Marketing and Communications Manager at Absa Bank Tanzania, Beda Biswalo, said the initiative reflects the bank’s commitment to supporting entrepreneurship and inclusive economic growth.

“By erasing the collateral barrier and transforming daily POS turnover into a powerful, immediate source of funding, we are not only redefining access to finance—we are fundamentally changing how we support business growth in Tanzania,” he said.

“At Absa, we believe ‘Your story matters,’ and this solution is a direct reflection of that promise. We are listening to our merchants, recognising their everyday hustle, and turning their real business performance into tangible opportunity.”

He further noted that the initiative aligns with the bank’s purpose of empowering businesses to thrive and contribute meaningfully to Tanzania’s economic development.

With the launch of Absa Merchant Financing, Absa Bank Tanzania aims to strengthen long-term customer relationships, expand access to inclusive financial services, and support business growth across the country by offering merchants faster and more accessible financing solutions.