The African Development Bank (AfDB), a regional development organization in Africa, has approved a USD 660,000 grant to Access Bank Tanzania (ABT), a newly established commercial bank in Tanzania focusing on microfinance. The initiative was made possible through the Fund for African Private Sector Assistance (FAPA), a subsidiary of the Enhanced Private Sector Assistance program, which is a billion-dollar initiative of the government of Japan and the AfDB to promote private sector development in Africa.
The grant, intended to improve access to microfinance services in Tanzania, will finance the provision of technical assistance to ABT. In the initial three-year phase, ABT will hire a long-term credit adviser and short-term consultants who will supervise the implementation of information technology and staff training. Trained staff will then replace the consultants.
“In the long term, the initiative’s contribution towards poverty reduction in the country cannot be overstated,” said Dr Sipho S. Moyo, AfDB’s resident representative, referring to the funding made available by FAPA.
By Jay Kumar, Research Assistant
About African Development Bank (AfDB):
Established in 1964, AfDB is a development bank that provides loans and grants to governments and private companies in Africa. AfDB commits approximately USD 3 billion annually to African countries. Owned and funded by member governments, the bank has a public-interest mandate to reduce poverty and promote sustainable development. The AfDB is controlled by a Board of Executive Directors, made up of representatives of its member countries. The current president is Donald Kaberuka.
About Access Bank Tanzania (ABT):
Established in 2002, the Access Bank Tanzania (ABT) is a commercial bank with a focus on microfinance in Tanzania. Initially endowed with a capital of TZS 6.3 billion (USD 4 million), the bank provides loans to micro and small businesses from TZS 100,000 (USD 75) up to TZS 25,000,000 (USD 18,723), with a maximum maturity of 18 months. The current majority shareholder is AccessHolding AG of Germany.
Additional Resources
1.) Source Article: http://allafrica.com/stories/201001040740.html
2.) African Development Bank: www.afdb.org
3.) Access Bank Tanzania: http://www.accessbank.co.tz/index.php
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