EFC Tanzania M.F.C.

Print

BIO has invested USD 1.5 million senior loan in EFC Tanzania M.F.C. (EFC Tz) to facilitate its further growth.

EFC Tanzania is a greenfield microfinance institution (MFI) registered as a microfinance company (MFC) and operating in Dar-es-Salaam with the plan of extending progressively their presence all over the country. It is an affiliate of the Canadian NGO Development International Desjardins (DID) network of EFCs in Sub-Sahara Africa and Latin America. DID ensures the deployment and development of EFCs. Once the EFC is launched, DID’s role is to manage operations and train the staff, leading the institution to financial sustainability with the ultimate objective of a local management and ownership. After almost 3 years of operations, EFC Tanzania is progressively becoming a credible alternative for MSEs financing in the market.

BIO joins the current investors AfricInvest Financial Sector (AFS), Bamboo Finance, Triple Jump and Dunduliza Company Limited, in EFC Tanzania.

Development impact:

  • Local economic growth: credit provision to MSMEs
  • Private sector consolidation/innovation: know-how and technology transfer; market structuring effects (expansion of credit to underserved zones)
  • Financial inclusion: access to financial services for micro- and small entrepreneurs

Website: http://www.efctz.com/

  • Investment amount (€):

    € 1.24 M

  • Contract signature :

    2015

  • Nature of intervention :

    Debt

  • Development impacts :

    • 1 — Local economic growth
    • 2 — Private sector consolidation/innovation
    • 3 — Financial inclusion