By Tanzania has launched a grant fund offering up to 30 million Tanzanian shillings ($11,700) to selected women- and youth-owned or led businesses, with applications opening across mainland Tanzania and Zanzibar.
The MSME Impact Grant Fund (IGF), established by Financial Sector Deepening Tanzania (FSDT) with funding from the European Union, is designed to help high-potential small businesses expand, create jobs and improve their access to commercial finance, FSDT said.
The fund provides non-reimbursable grants alongside business development support, targeting enterprises with growth potential, innovation and the ability to generate economic and environmental impact.
The launch comes as entrepreneurs in Tanzania seek greater access to capital for business expansion. FSDT said small and medium-sized enterprises face constraints including limited collateral, weak financial records and difficulty accessing financial products suited to their needs.
The MSME grants in Tanzania programme will initially cover Morogoro, Manyara, Shinyanga, Rukwa, Kagera, Simiyu, Kigoma, Lindi, Mtwara and Singida on the mainland, as well as several regions of Zanzibar, according to FSDT.
The Zanzibar areas include Zanzibar Urban/West, Zanzibar North, Zanzibar Central/South, North Pemba and South Pemba.
Marc Stalmans, head of cooperation at the European Union Delegation to Tanzania and the East African Community, said the EU wanted to expand opportunities for women and young entrepreneurs through the fund.
“Through the Impact Grant Fund, we are investing in enterprises with the potential to grow, create jobs, strengthen local economies and contribute to a more inclusive and sustainable private sector,” Stalmans said.
KPMG Advisory Limited is managing the grant fund. Alexander Njombe, managing partner at KPMG, said the firm would support participating businesses with both financing and business assistance.
The MSME Impact Grant Fund is aimed particularly at enterprises owned or led by women and young people, with youth defined by the programme as people aged 18 to 35.
Businesses applying for the fund must be registered MSMEs operating in mainland Tanzania or Zanzibar and demonstrate a viable and scalable business model.
Applicants must also operate in one or more of the fund’s priority sectors and show potential to create jobs and contribute to climate resilience and sustainability.
Women-led enterprises must have at least 51% women ownership, while youth-led enterprises must meet the programme’s youth ownership or leadership requirements, FSDT said.
Priority will be given to businesses that can demonstrate growth, innovation, job creation and measurable social or environmental impact.
The fund is focusing on sectors including climate-smart agriculture, agroforestry, sustainable fisheries and aquaculture, renewable energy, clean technologies, waste management, biodiversity restoration, sustainable food cold chains and digital solutions supporting climate adaptation and mitigation.
FSDT said the fund would provide more than just capital. Selected businesses will receive support to strengthen their operations and governance, improve their financial readiness and become better positioned to obtain loans and other forms of financing.
Recipients will also be connected with financial service providers for possible follow-on financing.
The fund’s objective is partly to use grants as a catalyst for attracting additional private-sector capital. FSDT has set a target for at least 50% of supported MSMEs to gain access to follow-on financing.
For entrepreneurs searching for MSME grants in Tanzania, the programme offers support at different stages of business development. Grants can help enterprises invest in equipment, technology, working capital, formalisation and other activities linked to growth.
FSDT’s wider Inclusive Finance for Growth of Women and Youth MSMEs programme is intended to address financial and capacity barriers affecting women and youth-led enterprises. It includes the Impact Grant Fund alongside enterprise development and support for financial service providers.
The EU-backed programme is aligned with Tanzania’s National Financial Inclusion Framework III, the National MSME Financing Framework and the Financial Sector Development Master Plan, according to FSDT.
Applications for the first funding cycle are open online in English and Swahili. FSDT said the programme will use three application cycles, with each call remaining open for two weeks.
Applicants will undergo completeness and eligibility checks before their proposals are reviewed.
The fund is also intended to encourage businesses to adopt more sustainable operating models. FSDT said climate-smart and environmentally sustainable enterprises would be among those prioritised under the programme.
The initiative forms part of broader efforts to improve financial inclusion for underserved entrepreneurs and strengthen the capacity of smaller businesses to participate in Tanzania’s economic growth.
FSDT said the ultimate measures of the fund’s impact would include enterprise growth and sustainability, job creation, inclusion of underserved groups, climate-resilient investment and access to additional financing.
