TEDI To Pilot Loan Fund
Small businesses struggle to find financing
Every business idea, from start ups to expansions, requires an infusion of capital from owners, investors or lenders. For small to medium-sized enterprises in Tanzania, raising capital is almost impossible. Small business owners struggle to find Investors and financing is currently not available to them within the Tanzanian banking system.
A new self sustaining loan fund
Our vision is to create and implement a self sustaining, Tanzanian administered loan fund for small and medium-sized Tanzanian businesses that include owner equity and demonstrate sustainability. The expansion of small and medium sized enterprises will:
A. alleviate poverty through improved household and community incomes of enterprise owners and employees,
B. leverage financial impacts by providing employee families with the basic needs of food, shelter, water, health, clothing, education, communication,
C. protect and promote the rights and well-being of women, children and other vulnerable groups of the society.
Our vision for the fund includes providing assistance to the enterprises by determining the need for and availability of training in business planning, enterprise sustainability and other aspects of successfully conducting a business.
5 pilot projects under review
To refine and develop the concept, a pilot project is under way to provide market rate loans to three to five small business entrepreneurs who do not have access to the Tanzanian banking system. The five enterprises have been reviewed and selected by TEDI-TZ has reviewed and selected theses from over 100 applications. Each of these enterprises meets the established set of criteria. Each owner is able to contribute significant equity to the business. All five are involved in providing food and water to local and regional markets and seek 3 year loans of three to five thousand dollars with owner equity investments of two to five thousand dollars.
TEDI is seeking investors and/or contributors
TEDI is seeking individuals, corporations and foundations willing to provide start up or expansion capital needed by small medium-sized enterprises in Tanzania. The pilot program funding goal requires $40,000. Once we fully capitalization the fund with $250,000 we will be able to assist 100 or more small enterprises. A gift or investment of $2,500 to $10,000 could go a long way toward improving the lives of twenty five to a hundred Tanzanians.
Three business women display the products they produce for TEDI representatives. Typical of many small Tanzanian entrepreneurs, these three women of Bukoba on the shore of Lake Victoria seek financing to for food processing equipment, distribution and marketing. They produce two protein enriched grain products, peanut butter, jams and a quite good wine which they currently market through a very few local food stores and the weekly village market.