This paper reports Tanzanian bankers＇ reasons for not giving SMEs the amount they request as loans to finance their businesses. Open ended interviews were used to collect primary data from eight interviews in six com...This paper reports Tanzanian bankers＇ reasons for not giving SMEs the amount they request as loans to finance their businesses. Open ended interviews were used to collect primary data from eight interviews in six commercial banks that serve SMEs and which have been in operation for more than five years. Secondary data was obtained from different documents like World Bank reports, brochures and websites of visited banks to mention the few. Findings show that sectors which are perceived as too risky by banks, poor documentation by borrowers which make banks unable to assess their creditworthiness, lack of understanding by SMEs themselves as to why they are doing businesses they do, lack or very limited knowledge on financial management by SMEs, lack of awareness of different products offered by different banks, stagnant businesses as well as lack of proper securitiries to cover their loans are reasons behind banks reluctant to provide loans to SMEs. Findings clearly show that it is still difficult for new SMEs to access finance from banks in Tanzania. It is critical for existing SMEs to put their houses in order to the level that is acceptable by banks if they need to approach banks for loans. Banks in Tanzania need to review their policies on the maximum amount of loans to SMEs to reflect the market demands. At the moment, new SMEs should not have much hope of getting finance assistance from most banks. Further, training institutions should continue educating SMEs on relevant aspect that are important to lenders and lastly, the government should consider providing guarantee to SMEs sectors that are perceived as too risky by banks just like the ongoing initiatives in the agriculture sector.展开更多
This study examined the impact of trade facilitation on economic development, particularly the impact of customs environment on trade flows over the period from 1995 to 2010. Five countries of the East African Communi...This study examined the impact of trade facilitation on economic development, particularly the impact of customs environment on trade flows over the period from 1995 to 2010. Five countries of the East African Community （EAC）, namely, Tanzania, Kenya, Uganda, Rwanda, and Burundi, are involved. The study employs a gravity model for estimating bilateral trade flows between the EAC partner states. The ordinary least square （OLS） technique is adopted and applied for the regression analysis by using the Stata 10.0 software. Results suggest that, the customs environment of the importer is significant and possesses a strongly positive impact on East African trade flows. Results also find that the customs environment of the exporter is insignificant, even though it shows a negative relationship with the East African trade flows, hence a negative determinant. East African countries have to improve their customs environment, especially when undertaking an importation, in order to boost the overall trade flow in the block. They should also improve other trade facilitation indicators, such as port efficiency, regulatory environment, and infrastructure. The aid for trade, in terms of technical and financial assistance, should also be enhanced for the development of infrastructure, including roads, railways, ports, bridges, and border posts.展开更多
文摘This paper reports Tanzanian bankers＇ reasons for not giving SMEs the amount they request as loans to finance their businesses. Open ended interviews were used to collect primary data from eight interviews in six commercial banks that serve SMEs and which have been in operation for more than five years. Secondary data was obtained from different documents like World Bank reports, brochures and websites of visited banks to mention the few. Findings show that sectors which are perceived as too risky by banks, poor documentation by borrowers which make banks unable to assess their creditworthiness, lack of understanding by SMEs themselves as to why they are doing businesses they do, lack or very limited knowledge on financial management by SMEs, lack of awareness of different products offered by different banks, stagnant businesses as well as lack of proper securitiries to cover their loans are reasons behind banks reluctant to provide loans to SMEs. Findings clearly show that it is still difficult for new SMEs to access finance from banks in Tanzania. It is critical for existing SMEs to put their houses in order to the level that is acceptable by banks if they need to approach banks for loans. Banks in Tanzania need to review their policies on the maximum amount of loans to SMEs to reflect the market demands. At the moment, new SMEs should not have much hope of getting finance assistance from most banks. Further, training institutions should continue educating SMEs on relevant aspect that are important to lenders and lastly, the government should consider providing guarantee to SMEs sectors that are perceived as too risky by banks just like the ongoing initiatives in the agriculture sector.
文摘This study examined the impact of trade facilitation on economic development, particularly the impact of customs environment on trade flows over the period from 1995 to 2010. Five countries of the East African Community （EAC）, namely, Tanzania, Kenya, Uganda, Rwanda, and Burundi, are involved. The study employs a gravity model for estimating bilateral trade flows between the EAC partner states. The ordinary least square （OLS） technique is adopted and applied for the regression analysis by using the Stata 10.0 software. Results suggest that, the customs environment of the importer is significant and possesses a strongly positive impact on East African trade flows. Results also find that the customs environment of the exporter is insignificant, even though it shows a negative relationship with the East African trade flows, hence a negative determinant. East African countries have to improve their customs environment, especially when undertaking an importation, in order to boost the overall trade flow in the block. They should also improve other trade facilitation indicators, such as port efficiency, regulatory environment, and infrastructure. The aid for trade, in terms of technical and financial assistance, should also be enhanced for the development of infrastructure, including roads, railways, ports, bridges, and border posts.
