A Cross-section of Small and midsize enterprises (SMEs) at Kariakoo Market in Dar es Salaam have trained financial literacy in a new drive to boost business growth and its sustainability.

Organized by the Bank of Africa (BoA), and themed: “Let's grow together”, the one-day training aimed at supporting SMEs in Tanzania by focusing on financial growth and business stability. The workshop covered key topics including commercial record-keeping, tax issues, and strategies for business expansion.

Among the beneficiaries, Frank Chaula described the training as an eye-opener and equipped them with skills in financial discipline, procurement rules, and financial record management.

 “This workshop is valuable for improving our business skills and tackling emerging challenges,” he said, lauding the Pan-African bank for organising it as it has taken them to the extra mile in terms of doing business.

Elia Komba, a transporter at Kariakoo Market said the training workshop was useful for them as it imparted to them financial technical skills and other banking technology skills needed for their businesses.

Workshop attendees praised BoA for its efforts to facilitate access to loans and improve business operations. They encouraged the bank to continue enhancing its services to benefit more Tanzanians.

Esther Cecil Maruma, BoA managing director said: “Our three-year strategic plan is dedicated to supporting entrepreneurs through financial training. This sector is crucial, contributing around 30 percent to national income, and with 90 percent of businesses being small and medium enterprises, empowering these businesses is essential.”  

Maruma said since the inception of these programs in 2021, BoA has reached 500 SME customers and intends to assist 170 more by the end of this year.

She said the results have been encouraging, with the bank’s profitability increasing by 33 percent from 6.03bn/- to 9bn/- between June of last year and June this year.

Maruma also highlighted the bank’s effective management of non-performing loans, which currently stand at 1.5 percent, well below the Central Bank of Tanzania’s 5 percent threshold.

“These figures reflect our customers’ reliability and promptness in repaying their loans,” she said, assuring Tanzanian entrepreneurs of the bank’s ongoing commitment to their success.

“The theme reflects our dedication to investing in this sector,” she said.  BoA’s three-year strategic plan allocates 62.23bn/- specifically for SMEs from 2022 to 2024.

Last year, the bank disbursed approximately 47.87bn/- in loans, with 20.67bn/- provided by June of this year, benefiting over 16,000 SME customers.

Mwamvua Majeshi, the bank’s acting head of retail banking also assured participants that credit services will be delivered promptly and in line with national banking regulations.

“In addition to services at our branches, we have invested in digital solutions such as mobile banking (B-Mobile), internet banking (BOA Web), and the new Bank of Africa WAKALA service, which includes over 200 agents nationwide,” Majeshi said.