Tanzania 2016 Open data

Capacity building SMEs MMFM 2016

Summary

Financial management support to SMMEs in Tanzania

Match Maker Fund Management through the SME Impact Fund, provides funding and technical assistance to Small and Medium Enterprises (SMEs) in agricultural value chains in Tanzania and other countries in East Africa. The grant to MMFM enables it to contract technical assistance to provide advice, coaching and mentoring to SMEs.

Goals

  • Small & Medium Enterprises provided with Technical Assistance

Background

The project aims to enable SMEs in Tanzania, especially in the agribusiness sector, to access relevant and adequate financing and sustainably invest. One of the biggest bottlenecks for SMEs to access financing is their inability to justify their requirements. Generally, their books of accounts are in disorder, no audited or management’s accounts of earlier years are available, and they lack a business plan, including financial projections.

Initial situation

As per June 2016, Match Maker Fund Management has been providing technical assistance to already 48 SMEs. The majority of the SMEs financed with this project are SMEs that have not been receiving technical assistance by the MMFM before.

Goals

The goals of the project are:
 To strengthen (agricultural) SMEs’ critical management capacities, especially financial management and forecasting.
 To improve the accessibility and eligibility of SMEs to financial services by banks and non-bank financial institutions.
 To develop new products and services such as a tailor made computerized modular financial management systems.

Goals

  • Small & Medium Enterprises provided with Technical Assistance

Target group

The target group is composed pf agribusiness SMEs in Tanzania, particularly the lower bracket of SMEs with a turnover between TZS 250 million (Euro 125.000) to TZS 500 million (Euro 250.000). The indirect beneficiaries are the staff that is (additional) employed by these SMEs and the Small Holders Farmers that supply to these SMEs and are secured of a market.

Project plan

30 SMEs are assisted with business planning, financial projections and SEEC baseline and benchmarks, and of these SMEs 20 will have accessed finance either from SIF or another financial institution and they will have received further financial management support, including the possibility of computerised accounting. All 30 SMEs will be assisted with strengthening their business through management support, i.e. by attending workshops on marketing, human resource and operational management.

Sustainability

The fund and the fund manager are sustainable in covering all costs by interest paid by investee SMEs. However, the technical assistance to the SMEs is not a sustainable activity, but a temporary one. The total costs are too high to be covered by the SMEs themselves, but they will contribute 6% of the costs.

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