Financial linkage

SIDO links SMEs to financial Institutions in two ways: - Introduce the clients to (with past good performance with (SIDO) to Financial Institutions for purpose of getting loans. Under this way, SIDO has been working with several banks like Akiba Commercial Banks (ACB), United Bank of Africa (UBA), Tanzania Investment Banks (TIB), Federal Bank of the Middle East, International Commercial Bank, Eurafrican Bank.

The main obstacle the clients get in procuring the services from these Financial Institution is collateral, and here is were the SME CGS will jump in case the bank is a participating organ in the scheme. Borrow from financial institutions and extend the borrowed funds to smes as loans using SIDO’s normal procedures. Through this way SIDO has been able to offer loans to smes using funds from national income generating program (NIGP), tanzania gatsby trust fund (TGT), small entrepreneurs loan fund (self), and east african development bank (EADB). Through both ways SIDO has been successfully delivering the service to the target group as per SIDO objective.