BY OUR CORRESPONDENT – DAR ES SALAAM
25 June 2025
In a major stride to support small and medium enterprises (SMEs), TIB Development Bank has secured a TZS 30 billion soft loan from the East African Development Bank (EADB). The financing facility is aimed at expanding access to affordable capital for SMEs, with repayment periods of up to 15 years.
TIB, the largest development finance institution (DFI) in the country, said the loan will allow SMEs to borrow from TZS 200 million upwards, with priority given to businesses in high-impact sectors including agro-processing, manufacturing, extractives, energy, ICT, tourism, education, and healthcare.
ENABLING GROWTH THROUGH CAPITAL ACCESS
Speaking at the signing ceremony, TIB’s Acting Director of Planning and Business Development, Mr Joseph Chilambo, emphasized the importance of providing adequate capital to enable SMEs to scale effectively.
“We believe that providing SMEs with substantial seed capital will enable them to execute their innovative projects more effectively than giving them small amounts,” Mr Chilambo said.
He noted that the bank's long-term goal is to help transform informal enterprises into fully formalized businesses, strengthening the broader economic ecosystem.
“The ultimate goal is to see more informal businesses across the country transition into the formal sector,” he added.
TRACK RECORD OF DEVELOPMENT FINANCING
Highlighting past initiatives, TIB Acting Managing Director Ms Lilian Mbassy recalled that the bank had previously secured a USD 20 million (TZS 53 billion) facility, which was successfully used to fund projects such as a coffee processing factory in Kagera and a cotton ginnery in Mwanza — examples of how impactful targeted financing can be in key regions.
REGIONAL PARTNERSHIP FOR SOCIO-ECONOMIC IMPACT
EADB Acting Director General, Mr Benard Mono, reaffirmed the bank’s commitment to promoting regional development across all East African Community (EAC) member states.
“We want to see impact,” he said, stressing the goal of tangible results through long-term financing to productive sectors.
Echoing the sentiment, EADB Chairman Dr Charles Mwamwaja, who also serves as Tanzania’s Commissioner for Financial Sector Development in the Ministry of Finance, urged local private sector players to take full advantage of EADB funding opportunities.
“The private sector should regard EADB as their partner in accessing financial resources,” Dr Mwamwaja emphasized.
TIB’S NATIONAL ROLE
Established by an Act of Parliament in 1970, TIB is mandated to provide medium and long-term financing to investors in key productive sectors, including commercial agriculture, industrial processing, transport, construction, mining, and tourism. The bank has played a vital role in promoting strategic investments aligned with Tanzania’s long-term development vision.
The East African Development Bank, on the other hand, was founded in 1967 and rechartered in 1980, following the collapse of the original East African Community. Its mission is to facilitate sustainable socio-economic growth through financial and advisory services to enterprises across the region.
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