According to the Deputy Permanent Secretary at Treasury Dr Servacius
Likwelile the commercial banks have not been able to adequately address
the funding needs of start-up and SMEs segment.
“Most of the banks are afraid to risk and are somehow conservative in
their lending policies, especially to the informal sector and to the
SMEs”, said the deputy PS in his remarks after he officially closed the
first Securities Industry Certification Course over the weekend in Dar
es Salaam.
He added: “While access to short-term loans, overdraft or trade
financing have become more accessible, long-term loans are still tied to
very stringent collateral requirements as well as high medium and long
term interest rates.”
The objectives of the course, organised by Capital Markets and
Securities Authorities (CMSA), were to train market players and
professionals to acquire knowledge and practical skills to keep pace
with the market demands.
Dr Likwelile noted that EGM is expected to bring new dynamism and
vibrancy to the equity market through an increase in issuances and
listings and translate into more choices in investment opportunities and
investment incomes for investors.
This should in turn promote saving culture on the part of Tanzanians,
channelling the savings into productive sector and thus contribute
positively to the growth of the economy and formalisation of businesses,
said the deputy PS
Source: The Daily News, www.dailynews.co.tz, reported by Ashery Mkama in Dar es Salaam
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