Tanzanian regulator to open SMEs’ access to venture capital funding

Dar es Salaam. The Capital Markets and Securities Authority (CMSA) is crafting new regulations to facilitate access to venture capital and private equity funding for small and micro-entrepreneurs (SMEs).

Speaking at the Women Creating Wealth (WCW) investor workshop in the city on September 19, 2024, CMSA’s Public Relations and Education Manager, Charles Shirima, explained that this initiative aims to provide SMEs with government-supported funding opportunities.

“We are focussing on how SMEs can effectively leverage venture capital or private equity to obtain the necessary capital for their management and growth,” Shirima stated.

He further explained that the government is developing a framework designed to aid SMEs in securing capital for business development.

Additionally, CMSA is committed to offering educational resources and capacity-building programs to help SMEs navigate the complexities of capital markets.

WCW Country Manager, Anabahati Mlay, emphasised the crucial role that access to finance plays in the growth and sustainability of women-led Small, Medium, and Micro enterprises (SMMEs).

To tackle this, Mlay disclosed that WCW has introduced entrepreneurs to various financing models available in both the Tanzanian market and beyond, outlining the associated opportunities and risks.

“We educate women entrepreneurs on alternative financing options, including non-conventional and non-traditional funding sources,” Mlay said.

She highlighted that WCW collaborates with multiple stakeholders to assist women entrepreneurs in securing loans and receiving technical support.

“We work with capital markets to empower women by providing guidance on attracting investors and making their businesses appealing for funding,” Mlay added.

In a strategic move, WCW has partnered with Warioba Ventures, an Africa-focused investment and advisory firm that specialises in pre-seed and seed funding, particularly for fintech and technology-related startups.

This partnership is aimed at supporting entrepreneurs who address key challenges in Africa by fostering sustainable business ecosystems.

As part of its initiative, WCW is also collaborating with consultants to develop comprehensive training modules on accessing funding for women entrepreneurs.

These modules will cover available options, criteria, opportunities, and risks and will feature funders with alternative financial models sharing their insights during events.

This holistic approach aims to equip women entrepreneurs with the knowledge and resources necessary to thrive in the competitive business landscape.