EU and EIB Invest in Zanzibar’s Blue Economy Growth
On Sunday, July 7, 2024, a significant milestone was marked in Zanzibar as the European Union (EU) Ambassador to Tanzania, Emillio Rossetti (left), Vice President of the European Investment Bank (EIB), Thomas Ostros (center), and Deputy Secretary General of the Ministry of Blue Economy and Fisheries in Zanzibar, Zahor Kassim Kharousy, signed agreements to provide accessible financing to small businesses aiming to invest in the blue economy sector on the islands. The total grant amounting to Sh43 billion (EUR 15 million) is aimed at empowering women-led enterprises.
Empowering Women-Led Ventures
Last year, Tanzania greatly benefited from substantial grants from the European Investment Bank, with Sh758 billion (EUR 270 million) allocated for new investments to support businesses through partnerships with Tanzanian banks such as CRDB, NMB, and KCB.
This investment facilitated loans for over 10,000 small and medium enterprises, including 3,000 women-led businesses and more than 900 enterprises engaged in the blue economy and cooperative associations from Zanzibar.
Enhancing Access to Funding
During the signing ceremony on July 6, 2024, in Unguja, Deputy Secretary General of the Ministry of Blue Economy, Zahor Kassim Kharousy, emphasized that these funds will enhance accessibility to credit. He highlighted how many companies and individuals previously struggled to meet existing loan criteria, underscoring the transformative impact of these funds.
He further stated that discussions will be held with Tanzanian banks such as CRDB, NMB, and KCB to streamline lending conditions, ensuring broader access to financing.
Opening Doors for Women in the Blue Economy
Thomas Ostros, Vice President of the European Investment Bank, emphasized that these funds aim to empower more women engaged in the blue economy sector to foster their economic advancement. He acknowledged the pivotal role of small businesses in Africa’s economy, generating employment and innovating various sectors.
Strengthening EU-Tanzania Cooperation
EU Ambassador to Tanzania, Emillio Rossetti, described the agreements as a testament to the EU’s commitment to enhancing collaboration with Tanzania. He highlighted their focus on empowering women to increase their incomes.
He also mentioned that the agreements will offer flexibility in repayment terms, potentially extending repayment periods beyond the typical two-year cycle, with specific terms to be clarified once lending operations commence.
Armed with a Laptop and a cup of coffee, Rothschild is on a mission to conquer the news world, one headline at a time.