In Focus: Some policies, schemes and funding available for women entrepreneurs in Tanzania
#WomenInBusiness #TanzaniaEntrepreneurs #EconomicEmpowerment #SheLeads
Tanzania known as the “Brain of Africa (Bongo)” or “The Green Land” is witnessing a surge in women-led businesses. This is happening with female entrepreneurs playing an increasingly critical role in the country’s economic growth. Despite challenges such as limited access to funding, training & business networks, numerous initiatives are working to bridge the gap and empower women in entrepreneurship. However, Tanzania is on a path of economic transformation.
Fueling Growth: Financial & Training Opportunities for Tanzanian Women in Business
The government has introduced policies to enhance financial inclusivity, ensuring that women have access to credit & investment opportunities. Moreover, digital platforms and innovation hubs are creating new pathways for women to launch and scale their enterprises.
To elaborate, government programmes to private sector initiatives & non-profit organizations provide a variety of resources – to support women entrepreneurs in Tanzania. The Tanzania Women Chamber of Commerce (TWCC) provides training, mentorship & networking opportunities, while the Small Industries Development Organization (SIDO) offers funding & business development support. Plus, international organizations such as the African Women’s Development Fund & the Women’s Entrepreneurship Access Center (WEAC) are equipping women with the skills and resources they need – to launch and grow successful enterprises.
Financial institutions are also stepping up, with banks like CRDB and NMB – offering tailored financial products designed specifically for women entrepreneurs. To add to all this, digital platforms and incubators are creating new opportunities for women – to access global markets and scale their businesses.
Here, let us explore the resources available to women entrepreneurs in Tanzania, highlighting initiatives that foster economic empowerment and drive inclusive growth in the nation’s evolving business landscape.
> Small Industries Development Organization (SIDO)
Committed to supporting women entrepreneurs with both policy and practical support is the Government of Tanzania, who have made impressive strides in supporting women entrepreneurs. Its policies reflect a commitment to advancing women. The Ministry of Industry, Trade & Marketing, has established special initiatives – to reach out to women, and government supported organizations such as the Small Industries Development Organization (SIDO) have been working to empower women entrepreneurs through training and access to credit.
It is recommended to improve women’s access to finance by encouraging existing commercial banks to establish gender-sensitive programs and lines of credit for women entrepreneurs. To improve women’s access to trade, there is the need to implement gender analysis in the formulation of trade and economic growth policies, and providing training for women entrepreneurs on international buyer requirements and other relevant information, to facilitate their exports to international markets.
> Initiatives to support women entrepreneurs in Tanzania
Initiatives to support women entrepreneurs in Tanzania include – the Jasiri Gender Bond, the Tanzania Support for Women Rights & the African Business Chamber’s Women in Business network.
Tanzania Support for Women Rights (TASUWORI)
This is a non-governmental organization that works to improve the living standards of women and children. Tanzania Support for Women Rights (TASUWORI) was established in 2014
African Business Chamber’s Women in Business network
This is a global network that supports African women entrepreneurs; and the network helps women start and scale successful businesses.
The network also helps women enhance their careers and leadership.
Other ways to support women entrepreneurs in Tanzania include: Improving access to finance, Enhancing entrepreneurship education and skills development, Promoting awareness and networking, Optimizing the regulatory framework, and Facilitating technology exchange and innovation.
The Jasiri Gender Bond
The Jasiri Gender Bond is an initiative by NMB Bank backed by FSD Africa, which has indeed, created a huge impact.
The Jasiri Gender Bond, the first gender bond in sub-Saharan Africa, was launched in April 2022 – to address the significant financing gap faced by women-owned and led businesses. Named “Jasiri” – Swahili for “brave” – this bond represents the strength & determination of Tanzanian women entrepreneurs, and is aimed at supporting their empowerment in line with the SDGs, particularly 1 (No Poverty), 5 (Gender Equality), and 10 (Reduced Inequalities).
Listed on the Dar Es Salaam Stock Exchange and the Luxembourg Green Exchange, the Jasiri Gender Bond raised approximately US$ 32 million, far exceeding expectations with a 197% oversubscription. This overwhelming response struck a chord – as it emphasized the bond’s significance as an inspiration for gender-focused economic empowerment in Africa.
The Jasiri Gender Bond targets businesses – that are either predominantly owned by women (at least 50%), have a workforce of more women than men, or offer products or services that significantly benefit women. In fact, male-owned enterprises that notably support women’s needs also qualify as target enterprises. This could encompass a range of businesses – from maternity hospitals to companies specializing in feminine products, emphasizing their pivotal role in uplifting women’s economic status.
As part of NMB Bank’s retail products, the Jasiri Bond provides women business owners with – access to new markets, going beyond only financial assistance. The project does more than just give these women access to loans with rates lower than the industry average; it also gives them experience in foreign markets in countries like Turkey and China, which helps them become more savvy businesswomen. Apart from providing financial support, the bond cultivates a community of strong businesswomen – by connecting them with a varied network of entrepreneurs across the continent.
https://fsdafrica.org/blog/braving-the-bonds-empowering-women-entrepreneurs-in-
tanzania/
> CRDB scheme to boost women entrepreneurs
CRDB (Tanzania) bank provides a new scheme – for women to access loans without collateral, after it became clear that the majority of them carry out businesses without security which could help them access loan facilities from the financial institutions.
> The Women Creating Wealth (WCW) Programme
The Women Creating Wealth (WCW) programme and the Trusts’ investment fund Afrishela, in the recent past held a workshop in Tanzania, focusing on alternative financing models that could help women entrepreneurs access capital to address this issue.
WCW’s role in supporting women
WCW is more than a programme; it is really a movement – transforming economic opportunities for African women entrepreneurs.
In fact, through WCW, a community of successful women entrepreneurs has been built. They want to invest in women-owned businesses and create a network focused on wealth creation for women.
In Tanzania, Kenya, Malawi, South Africa, Senegal, and Zambia, WCW helps businesses become more visible and fundable. The programme addresses financial mindset, bookkeeping, negotiation skills & efficient processes.
> Hand in Hand
Hand in Hand International, in partnership with Innovations for Poverty Action – aims to test the impact of an enhanced version of its longstanding livelihoods model that supports women’s economic empowerment.
The new 5-step model introduces a gender-focused component that engages with men and community leaders – with the goal of shifting the social norms that perpetuate gender inequality and poverty. The intervention and impact evaluation will be implemented in Tanzania, with the intention to scale it up to four other countries.
> Policies
In Tanzania, policies aimed at supporting women entrepreneurs – include initiatives to improve access to finance, business training programs specifically designed for women, gender sensitive regulations, and policies promoting women’s participation in traditionally male dominated sectors, often facilitated through the Tanzania Women and Gender Policy and various regional development plans like the Zanzibar Economic Empowerment Policy.
To discuss further, the key aspects of these policies include:
– Financial Access
– Microfinance schemes: Targeted microloans with flexible repayment options specifically designed for women entrepreneurs.
– Credit guarantee funds: Government-backed schemes to mitigate risks for lenders providing loans to women-owned businesses.
– Women-led investment funds: Dedicated funds for investing in women-owned enterprises.
> The Federation of Associations of Women Entrepreneurs of Tanzania (FAWETA)
The Federation of Associations of Women Entrepreneurs of Tanzania (FAWETA) is the Tanzanian chapter of the Federation National Association of Women in Eastern and Southern African Countries. It was formed and registered in 1993 and its members are mostly from other women’s groups.
Its principal objectives are – to create more awareness of the concerns and issues of women in business; to encourage women to set up enterprises or expand existing ones; serve as a link between members and regional trade organizations and NGOs to promote trade and development; increase awareness of women in business on issues at the policy level, and to increase women’s participation in decision-making.
Included among its strategies are:
– to encourage and facilitate the formation of women associations on a voluntary basis;
– to devise programmes for existing associations to strengthen themselves;
– to promote business training and entrepreneurship development among members by way of courses, trade fairs and workshops;
– to coordinate trade promotion and development with relevant forums in the field of industry, agriculture, energy, transport, natural resources and mining;
– to disseminate business and technical information to women in business;
– to look for export markets for member’s products, and networks within COMESA/SADC in search for markets, joint ventures & financing.
https://www.afdb.org/fileadmin/uploads/afdb/Documents/Policy-Documents/GOWE%20Tanzania.pdf
The Local Government Authority Financial Act was modified in 2018. It was basically – to advance women’s credit accessibility and financial inclusion. In particular, the recently enacted Section 37A requires local government authorities – to set aside 10 per cent of their collected revenue to provide interest-free loans, with Women entrepreneurs in Zanzibar can apply for soft loans from the Zanzibar Entrepreneurship and Empowerment Foundation (ZEEF).
The Women Development Fund provides soft loans – to women in Tanzania’s mainland. Implemented countrywide, the Market Infrastructure, Value Addition & Rural Finance (MIVARF) program aims – to improve rural populations’ access to formal financial services in Mainland Tanzania and Zanzibar. In addition to capacity building on agricultural or value chain-related issues, program participants get agricultural processing machinery, equipment & training.
> Women Entrepreneurship Development Trust Fund (WEDTF)
The Women Entrepreneurship Development Trust Fund (WEDTF) empowers women – in Zanzibar, Tanzania through microcredit and business training – enabling them to
create job opportunities for themselves, their families and communities.
Poverty remains the biggest development challenge facing Tanzania, one of the world’s
10 poorest countries, where around 68% of the population lives with less than $1.25 per
day. Receiving no proper education, and often forced to marry at a very early age, women and girls are particularly disadvantaged.
So all of this, puts girls’ and women’s health at risk and as a consequence, tragically lower their chances to break the cycle of poverty.
In order to implement a positive change and stimulate economic growth in this context, W4’s field partner WEDTF has developed its own solution: an innovative microcredit program based on the Grameen Bank model – providing small loans to poor women entrepreneurs on the islands of Unguja and Pemba. In addition to gaining access to credit, women receive entrepreneurial and technical training, which enables them to implement long-term, sustainable business practices.
Founded in 1995, WEDTF was founded in 1995 and by in 2013, most of the members were able to send their children to school and benefited from greater access to healthcare too. Within targeted communities, people living with HIV have seen more local job opportunities and significant improvement in their quality of life too.
https://www.w4.org/en/fieldpartner/wedtf-tanzania/
> The ILO Women’s Entrepreneurship Development (WED) programme
The ILO Women’s Entrepreneurship Development (WED) programme works with partners – to increase economic opportunities for women entrepreneurs by supporting them in starting, strengthening and expanding their enterprises.
This is done by:
– creating the optimal conditions for women’s entrepreneurship to thrive.
– strengthening the institutional capacity of both financial and non-financial service
providers to better serve the needs of women entrepreneurs.
– providing tailor-made tools and approaches to reinforce women’s capacities to start
and consolidate sustainable businesses.
The programme increases knowledge about women entrepreneurship and provides a platform for the voice of women entrepreneurs – to contribute towards shaping policy.
The WED programme builds on gender equality policies that are integrated across all the ILO’s work in enterprise development. The programme’s WED Strategy was adopted by the ILO’s highest governance structure.
The ILO provides a comprehensive package of tools, advisory services and capacity building. Networks of national and international trainers and partners are accredited in ILO tools and approaches for sustainability.
https://www.giz.de/en/downloads/ilo-2026_womens-entrepreneurship-development.pdf
Avtar Madan
Himanshu
Shree Lahiri
Poonam Sinha
