Country
Tanzania
Local project partner
--
German project partner
--
Donor
Enabel
Duration
09.06.2026 - 08.02.2027
Access to finance remains a major constraint for enterprises, particularly those operating in areas such as sustainable agriculture, waste recycling, renewable energy, eco-friendly manufacturing, and circular production systems. While the demand for financing in these sectors continues to grow, many FSPs including Microfinance Institutions (MFIs) and Savings and Credit Cooperative Societies (SACCOS) struggle to effectively serve this emerging market due to institutional and structural challenges. These include weak governance systems, limited capital structuring, inadequate risk management frameworks, outdated information systems, and a lack of experience in product innovation and environmental risk assessment.
The transition toward a green and circular economy presents a major opportunity for Tanzania to achieve sustainable and inclusive economic growth. However, realizing this potential requires a financial sector that is adequately equipped with the institutional capacity, governance systems, and financial instruments necessary to support environmentally responsible enterprises, particularly MSMEs. Most local financial service providers currently lack the technical knowledge, operational systems, and risk assessment tools required to appraise green investments or design financial products suited to the specific needs and risks of MSMEs operating in green and circular economy sectors. In response, this program seeks to strengthen the institutional, operational, and technical capacities of financial institutions to enable them to deliver inclusive green finance more effectively. The program will support improvements in governance, internal controls, and environmental and social risk management, while promoting the design, testing, and rollout of tailored financial products for green and circular MSMEs leading to unlock access to capital, while promoting gender and youth inclusion within green financial products and delivery mechanisms.
Task
Once suitable financial institutions have been selected in the project regions of Mwanza, Pemba, and Tanga, a gap analysis will be conducted at these partner institutions. Based on the results, capacity-building measures will be implemented, and financial products for SMEs will be jointly developed and subsequently launched on the market.
