Are Tanzanian banks stepping up to support startups and entrepreneurs?

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CRDB Bank Empowering Online Business Operators

This week, CRDB Bank in Tanzania conducted a special seminar focused on enhancing entrepreneurship skills and mitigating cyber risks for over 1,000 online business operators. The seminar, organized both physically and online, aimed to equip attendees with the knowledge and tools necessary to succeed in the digital economy.

In today's digital age, social media platforms play a pivotal role in shaping business landscapes, especially for small and medium enterprises (SMEs). Instagram, with its visually appealing interface and wide reach, has emerged as a powerful driver of entrepreneurship through e-commerce in Tanzania.

NBC Tanzania and Silabu Bring Financial education directly to your home.

NBC Tanzania has partnered with Silabu, the social learning app, to equip Silabu tutors to integrate financial literacy into their teaching, utilizing NBC Tanzania services. By equipping students with financial knowledge, this partnership is paving the way for a brighter financial future for Tanzanians.

Why Financial Literacy Matters?

• Less than a third of sub-Saharan Africa’s population is financially literate.

• Rise of fintech makes the need for financial literacy education more necessary – and urgent. Indebtedness and risky investing is likely to increase if not proactively addressed.

Stanbic Bank Tanzania and Ramani To Revolutionizing Domestic Trade

Stanbic Bank Tanzania and Ramani have announce a strategic partnership aimed at revolutionizing domestic trade in Tanzania. This partnership will see Stanbic Bank Tanzania participating in Ramani's financial marketplace, providing vital capital to support working capital needs for key value chains that drive domestic trade in the country.

Ramani has a product that helps salespeople track their inventory, customers, and sales transactions. It also allows micro-distributors to place and receive product orders.

The Big Question : Do Banks Support Startups Enough, or Are They More Focused on SMEs?

• Last year, the European Investment Bank (EIB) demonstrated its commitment to supporting Tanzanian growth by signing a €270 million backing for a €540 million business financing initiative to SMEs.

• This week NMB Bank signed a two year agreement with government. Micro, Small and Medium Entrepreneurs (MSMEs) will receive Sh18. 5 billion in the government's empowerment loans during the coming two years.

What Might Be Reasons Banks Focus on SMEs?

Lower Risk: SMEs typically have a more established track record and lower risk profile compared to startups.

Proven Business Model: SMEs often have a proven business model and existing revenue streams, making them more attractive loan candidates.

Collateral Availability: SMEs may have some assets to use as collateral, making loan approval more likely.

The good

Banks are increasingly recognizing the potential of startups. However, the support may not yet be as readily available as it is for established SMEs.

Tip of the Week: Think Like an Investor - Spotting Investable Businesses

Investors are looking for businesses with the potential to generate a significant return on their investment.

Investors conduct thorough due diligence before investing, but understanding their priorities can help you refine your business model and increase your chances of attracting investment.

Funding Spotlight

SLINGSHOT 2024 Deep Tech Startup Pitching Competition (Global) : SLINGSHOT 2024 is your platform to launch your venture onto the global stage.

Innovators Sprint Up Programme (East Africa) : Get ready to be part of East Africa's biggest youth entrepreneurship event! This initiative by "Digital Skills for an Innovative East African Industry" aims to empower young university innovators.

FuturizeU: Calling all early-stage university startups with healthcare and climate change solutions.

UNICEF Venture Fund : Focused on diversity and inclusion, the UNICEF Venture Fund specifically invests in early-stage startups that leverage cutting-edge technologies like AI, machine learning, and blockchain to address the needs of marginalized and underserved children and families.

Google for Startups Accelerator : Are you a Seed to Series A startup leveraging advanced technologies like AI, ML, or data to solve real-world problems? Do you dream of scaling your solution and making a significant impact across Africa?

The Social Innovators Programme & Awards (SIPA) : A fellowship exists to support the growth innovative youth-led social enterprises.

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