EQUITY FOR TANZANIA LIMITED
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
EFTA Ltd is a Tanzanian leasing company specialised in serving small and medium enterprises and farmers. Loans usually have an amount of up to USD 60,000, with no collateral except for the equipment itself.
What is our funding objective?
To support EFTA expanding its lease portfolio.
Why do we fund this investment?
Africa’s private sector is heavily made up of informal small enterprises who lack the formality and collateral requirements sought by commercial banks and therefore lack access to the finance they require to grow their businesses. EFTA’s zero collateral requirement addresses one of the key constraints on small enterprise borrowing levels, allowing customers to pursue ambitious growth plans.
What is the Environmental and Social categorization rationale?
EFTA is classified as category C in view of the small average loan size and the absence of exposure to high risk sectors. Nevertheless, proper E&S management receives high attention by EFTA, which has led to the development of an ESG Policy, which applies to all investments, regardless of their size.
More investments
| Date | Total FMO financing |
|---|---|
| 12/17/2018 | USD 4.00 MLN |
- Region
- Africa
- Country
- Tanzania, United Republic of
- Sector
- Financial Institutions
- Publication date
- 9/14/2018
- Effective date
- 12/17/2018
- Total FMO financing
- USD 1.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C