Arusha — OUT of over 5.5 trillion/- worth of foreign grants donated to boost capital for local industrial developments in five East African countries, only 17 per cent of the sum trickled into Tanzania.
The founder of Tanzania Venture Capital Network (TVCN), Mr Salum Awadh stated that most local investors in the country missed out on the opportunity to get the 2.4 Billion US dollars boost disbursed within a period of six years between 2012 and 2017.
Mr Awadh was speaking here, during a special seminar to educate investors, industrialists and entrepreneurs on alternative ways of raising capital for industrial development, in the country.
According to Awadh, the grants are usually provided for Eastern African countries including Tanzania and its EAC siblings, Kenya, Rwanda and Uganda as well as Ethiopia but it's only Kenya which seems to benefit having applied for 60 per cent of the funds, Tanzania got just 17 per cent or around 900 billion/- in six years.
The money was channeled to 108 firms, in the five East African countries but only about 11 companies in Tanzania seem to have benefitted from the grants.
Mr Awadh assured that with the recent launching of Tanzania Venture Capital network, the industrial development in the country will now be helped and advised on how to get a boost from future foreign grants aimed at assisting enterprises in Tanzania, Kenya, Uganda, Rwanda and Ethiopia.
"The grants are simple and straightforward, and they don't come with strings attached in form of interests or overwhelming collaterals," Awadh stated.
The Head of Forex Exchange at the National Microfinance Bank (NMB), Ms Gladness Clara Deogratius, said her institution offers financial advisory services prior to firms soliciting grants from abroad or local loans and that is why they also participated in the training.
Tanzania Venture Capital Network is not-for-profit initiative established by SSC Capital, a financial and investment advisory firm, to promote the growth and development of private equity and Venture capital industry in Tanzania.
The TVC Network carries out various activities for creating awareness, knowledge, data, intelligence, advocacy, and organise events and networking for promoting industrial growth in Tanzania.