Tanzania: MCB Secures 9bn/ - Loan for SMEs

Dar es Salaam — MWALIMU Commercial Bank (MCB) received a 9bn/- loan from Netherlands-based social investor Oikocredit to boost liquidity and expand SME lending.

Arranged via Africapital with Noblestride Capital as financial advisor, the facility aims to support SMEs by improving access to affordable credit and business growth financing.

MCB's Head of Business Development, Mr James Ngaluko, said the funding will bolster the bank's mission to support education-based businesses and expand its SME lending portfolio.

"There is still a significant financing gap across the education ecosystem and related businesses. This facility will enable us to extend financial solutions to support that segment," Mr Ngaluko said.

Initially focused on teachers, the lender has expanded SME financing in the education sector, disbursing around 70bn/- in loans. To that, the bank will allocate these funds in two categories, with 50 per cent earmarked for businesses within the education ecosystem, while the remaining portion will be directed to SME lending.

In addition, Mr Ngaluko said that MCB continues to scale up digital banking services, with about 70 per cent of its transactions currently being conducted through digital channels.

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Oikocredit's Investment Officer Mr Lewis Nyaga said the initiative reflects the organisation's commitment to inclusive finance and measurable social impact.

He said MCB's priorities align with Oikocredit's communityfocused approach, boosting education-sector finance and SME lending.

"This partnership reinforces our strategic return to Tanzania while supporting responsible finance and expanding opportunities for underserved communities," Mr Nyaga said.

Africapital CEO Mr Burak Büyüksarag said the deal reflects rising international confidence in Tanzania's financial sector and expects additional funding tranches to follow.

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