Stanbic Tanzania secures Sh70 billion facility to expand SME lending
Stanbic Bank Tanzania Chief Financial Officer, Derrick Lugemala (third right), and Finance in Motion Senior Investment Manager, Dragan Spirovski (second left), exchange documents after signing a TZS 70 billion loan agreement in Dar es Salaam. The facility will strengthen Stanbic Bank’s capacity to support small and medium-sized enterprises (SMEs). Looking on are Finance in Motion Senior Investment Officer Masoud Abdalla (left), Stanbic Bank Senior Communications Manager Dickson Senzi (right), and Stanbic Treasurer Zainul Chandoo (second right). PHOTO | COURTESY
Dar es Salaam. Stanbic Bank Tanzania has secured a Sh70 billion facility to expand lending to small and medium-sized enterprises (SMEs), particularly those operating in sustainable agriculture and related value chains.
The financing was structured in two phases, comprising a Sh50 billion tranche secured and drawn in 2025 and a further Sh20 billion facility drawn in 2026. The funding is expected to deepen access to local-currency financing and support inclusive economic growth.
The facility was arranged in partnership with Finance in Motion and the eco.business Fund and will be channelled towards businesses involved in agriculture, processing, trade and other sectors that contribute to productivity, employment and long-term economic development.
Speaking during the signing ceremony in Dar es Salaam, Stanbic Bank Tanzania Chief Financial and Value Officer Derick Lugamala said the facility reflects the bank's commitment to supporting businesses with financing that enables growth while promoting responsible business practices.
"SMEs remain central to Tanzania's economic future. They create jobs, support households, strengthen supply chains and drive local enterprise. Through this facility, we are expanding access to financing that helps businesses invest, grow and become more resilient," he said.
Mr Lugamala said the partnership would support enterprises seeking not only capital but also more sustainable ways of doing business.
By providing financing in Tanzanian shillings, the facility is expected to reduce foreign exchange exposure for SMEs and provide greater certainty for long-term planning and investment.
The transaction aligns with Stanbic Bank's broader strategy of supporting sustainable development through financing that promotes climate resilience, financial inclusion and responsible business growth.
The facility also reflects growing confidence in the bank's ability to deploy capital effectively within the SME sector and highlights the role of partnerships between local financial institutions and international impact investors in addressing financing gaps.
For Finance in Motion and the eco.business Fund, the partnership supports efforts to channel capital towards businesses and financial institutions that promote sustainable agriculture, biodiversity conservation and climate resilience.
Chairperson of the eco.business Fund Board of Directors, Michael Evers, said the partnership demonstrates how targeted financing can support both economic growth and environmental sustainability.
"We are pleased to continue working with Stanbic Bank Tanzania to expand access to finance for businesses operating in sustainable agriculture and agricultural value chains. These sectors are vital to local economies, and the right financing can help improve productivity, strengthen supply chains and support more sustainable production practices," he said.
He added that the facility would give more Tanzanian businesses an opportunity to grow while protecting natural resources, supporting communities and building long-term resilience.
Stanbic Bank Head of Business and Commercial Banking, Fredrick Max, said the lender would continue working with partners who share its commitment to Tanzania's economic development.
"Our focus is to provide solutions that meet the needs of our clients and support the development of the economy. This facility enables us to serve more SMEs, support more sectors and contribute to a stronger business environment," he said.
As Tanzania pursues inclusive growth, SMEs are expected to remain a key driver of employment, innovation and value creation, with access to affordable financing seen as critical to unlocking their full potential.
