SIDO AND CRDB BANK LAUNCHED SME CREDIT GUARANTEE SCHEME.
Small Industries Development Organization (SIDO) and CRDB Bank signed an agreement to jointly support agri business and boost agro processing activities in seven regions.
The Program was launched by the Minister for Industry and Trade Hon. Dr. Abdallah Kigoda (MP) on April 2015 at the Ministry of Industry and Trade(MIT), whereby the two parties agreed to develop a joint program to utilize SIDO`s experience into the SMEs businesses evaluation for CRDB financing.
The establishment of Credit Guarantee Scheme is supported by the Agriculture Food Aid Counterpart Fund through the Government of Japan. A grant of Tzs.1billion has been approved from utilization of 2KR-202 Counterpart Funds as a Guarantee Fund to finance the promotion of Macro and Small agro processing Enterprises.
SIDO has an extensive and wide range of knowledge and experience over the business risk of SMEs activities accumulated through her 45 years experience and contracts with 120,000 SMEs participating at SIDO Programs.
This Program intends CRDB to provide loan facilities to SMEs investment and business promotion activities in the agro –processing field that are specified and recommended by SIDO as financially sound and technically viable.
At the beginning the program will operate in seven regions that include: Morogoro, Dodoma, Singida, Manyara, Arusha, Kilimanjaro and Mbeya, and will be expanded nationwide at later year if the program is proved to be effective. The priority of this program is for agro- processing projects working on value addition.
CRDB Bank is the leading bank in SMEs financing in the country and has already extended loans to 3,590 SMEs at a tune of 180 billion Tanzanian Shillings up April 2014. However the business risk has been a growing challenge for the bank under rapidly changing business environment and emerging entrepreneurs under the expansion of rural economy.