The Governor of the Bank of Tanzania (BoT), Mr. Emmanuel Tutuba, has announced that the Government, through the Central Bank, plans to establish a Credit Guarantee Public Limited Company aimed at strengthening the economic growth of small and medium enterprises (SMEs) and improving citizens’ livelihoods.
Governor Tutuba made the remarks on December 8 during a meeting with heads of various financial institutions held at the Bank of Tanzania headquarters in Dar es Salaam.
He noted that credit guarantee services have continued to expand globally, citing Malaysia as an example, where a credit guarantee company has operated successfully for over 50 years.
The initiative is expected to stimulate the growth of SMEs, create more jobs, expand government revenue through taxes, and strengthen the resilience of the national economy by boosting productivity across various sectors. Furthermore, the establishment of the credit guarantee company will promote the development of new investment areas, enhancing the country’s competitiveness in the modern economy.
Speaking on behalf of commercial banks, the Chairman of the Tanzania Bankers Association (TBA) and Chief Executive Officer of the National Bank of Commerce (NBC), Mr. Theobald Nsabi, commended the Government for the initiative and affirmed the banks’ readiness to cooperate in establishing the company, as well as their continued support for efforts to strengthen the financial sector.
Currently, credit guarantee services in the country are implemented through two Government funds supervised by BoT: the Export Credit Guarantee Scheme (ECGS) and the Credit Guarantee Scheme for Small and Medium Enterprises (SME-CGS).
The meeting was also attended by officials from the Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE).
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