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Tanzania: SMEs Decry Elusive Venture Capital

Tanzania: SMEs Decry Elusive Venture Capital

TVCN is an initiative that has been set up to promote the growth and development of private equity and venture capital as an alternative source of finance for local companies, and an alternative asset class for investors in Tanzania.

While across the world and in most parts of Africa, venture capital is the go to capital solution for startups and the expansion funding option for well performing SMEs, entrepreneurs in Tanzania have raised concerns over access to venture capital.

Speaking to The Exchange from Tanzania’s tourism hub Arusha, John Mpanda, a tourism enthusiast and owner of Serengeti Safaris, a tour operations firm said getting venture capital is difficult and the options are limited.

“Arusha is a world tourist destination but yet banks and financial institutions are still reluctant to fund tourism or even hospitality and catering startups,” he said.

According to him, to set up his tour operations business he had to go out of pocket and rally up financial aid from family members and friends.

“Luckily their interest rate is not so high and they don’t even want stake in the company,” he laughs “…but I am one of a small group of investors who have got so lucky…most entrepreneurs simply give up their investment ambitions when they hit that capital brick wall,” he says.

A Case For Awareness

However, despite the dire need for capital, most individuals looking to start a business are hardly aware of venture capital options and the few that are, do not know how or where to access them.

Similarly, even well performing SMEs like Mpanda’s tour company, that has grown from three employees to 11 in less than two years, they too have little knowledge of Venture capital options and how to access them.

“There is great need to raise awareness among the general public and SMEs about venture capital ,” says SSC Capital CEO Salum Awadh.

“While there is lots of potential out there, most of it goes unrealized simply due to a lack of knowledge of the funding options that are readily available,” he adds.

SSC Capital is one such option. Based in Dar es Salaam, SSC Capital is a financial and investment advisory firm that ‘help investors find the right investment assets while supporting businesses in building their businesses to be more robust, sustainable and of higher value.’

“We offer traditional consulting services, fund management, crowdfunding and private equity and venture capital services,” the CEO details.

The firm has been operational for seven years now, having served a diverse of clients from both public and private sector, and has managed to raise more than USD 400m for its clients in Tanzania.

Earlier this month, to promote growth and development of private equity and venture capital in Tanzania, SSC Capital established the Tanzania Venture Capital Network (TVCN).

Tanzania Venture Capital Network (TVCN)

TVCN is an initiative that has been set up to promote the growth and development of private equity and venture capital as an alternative source of finance for local companies, and an alternative asset class for investors in Tanzania.

The Network was officially launched on 05th March 2018 with much enthusiasm and support from both the public and private sector in unlocking the potential of the country in attracting more PE/VC deals coming into the market.

The report of deal flow to Africa by Africa Venture Capital Association indicates that a total of USD 2.4bn was invested in East Africa for a period of 2012 to 2017, with only 17% and 10% of deal value and volume respectively coming into Tanzania.

The Network seeks to carry out various activities that include training, education and awareness, information sharing, research and data, publications, and advocating for a better PE investment climate in the country that will help see more deal activities in the market.

The Network also seeks to contribute in addressing all fundamental issues at the macro level that are necessary in making Tanzania an attractive destination of PE deals.

Watanzania wahimizwa kujiunga na mtandao wa mitaji

Watanzania wahimizwa kujiunga na mtandao wa mitaji

Mkurugenzi Mtendaji wa Taasisi ya Sekta Binafsi nchini Bw. Godfrey Simbeye (kushoto) akifafanua jambo kabla ya kuanza kwa uzinduzi wa Mtandao wa Mitaji ya Ubia Tanzania – Tanzania Venture Capital Network uliofanyika katika Hoteli ya Serena jijini Dar es Salaam. Wanaomsikiliza ni Muasisi wa Mtandao wa Tanzania Venture Capital, Bw. Salum Awadh (wa pili kushoto aliyesimama), Mwenyekiti wa Taasisi ya Sekta Binafsi nchini- TPSF Dr Reginald Mengi (wa pili kulia) pamoja Mkurugenzi wa Uwekezaji na Maendeleo ya Viwanda –TPSF, Edward Furaha (kulia).

Mwenyekiti wa Taasisi ya Sekta Binafsi nchini- TPSF Dr Reginald Mengi (kushoto), Katibu Mkuu Ofisi ya Waziri Mkuu Prof. Faustine Kamuzora (katikati) pamoja na Mkurugenzi Mtendaji wa Taasisi ya Sekta Binafsi nchini Bw. Godfrey Simbeye (kulia) wakiwasili kwenye Hoteli ya Serena jijini Dar es Salaam kwenye hafla ya uzinduzi wa Mtandao wa Mitaji ya Ubia Tanzania – Tanzania Venture Capital Network uliofanyika jijini Dar es Salaam.

Muasisi wa Mtandao wa Tanzania Venture Capital, Bw. Salum Awadh akitoa maelezo kuhusu Mtandao wa Tanzania Venture Capital kwa mgeni rasmi Katibu Mkuu Ofisi ya Waziri Mkuu Prof. Faustine Kamuzora (kushoto) kabla ya kuelekea kwenye hafla ya uzinduzi wa mtandao huo iliyofanyika katika Hoteli ya Serena jijini Dar es Salaam. Wengine ni Mkurugenzi Mtendaji wa Taasisi ya Sekta Binafsi nchini Bw. Godfrey Simbeye (wa pili kushoto) pamoja na Mwenyekiti wa Taasisi ya Sekta Binafsi nchini- TPSF Dr Reginald Mengi (kulia).

Muasisi wa Mtandao wa Tanzania Venture Capital, Bw. Salum Awadh akitoa neno la ukaribisho na kutambulisha mtandao huo ambapo amesema ni fursa kwa wawekezaji nchini kujipatia mitaji ya kuanzisha ama kuendeleza biashara zao kwa ubia kwa masharti rahisi wakati wa hafla ya uzinduzi rasmi wa mtandao huo ilyofanyika katika Hoteli ya Serena jijini Dar es Salaam.

Mwenyekiti wa Taasisi ya Sekta Binafsi nchini- TPSF Dr Reginald Mengi akitoa neno la ufunguzi kabla ya kumkaribisha mgeni rasmi Katibu Mkuu Ofisi ya Waziri Mkuu Prof. Faustine Kamuzora kutoa hotuba ya uzinduzi wa Mtandao wa Tanzania Venture Capital uliofanyika katika Hoteli ya Serena jijini Dar es Salaam.

Mgeni rasmi Katibu Mkuu Ofisi ya Waziri Mkuu Prof. Faustine Kamuzora akitoa hotuba ya uzinduzi rasmi wa Mtandao wa Tanzania Venture Capital ambapo amesema umefanyika wakati mwafaka ambapo serikali ya awamu ya tano ipo katika mikakati ya kuigeuza Tanzania kuwa nchi ya viwanda katika hafla fupi iliyofanyika kwenye Hoteli ya Serena jijini Dar es Salaam.

Mkurugenzi wa Uwekezaji na Maendeleo ya Viwanda –TPSF, Bw. Edward Furaha na Aliyekuwa mbunge wa Bunge la Afrika Mashariki Mh. Abdullah Mwinyi wakifuatilia mada mbalimbali zilizokuwa zikiwasilishwa kwenye hafla ya uzinduzi wa Mtandao wa Tanzania Venture Capital uliofanyika katika Hoteli ya Serena jijini Dar es Salaam.
 

Katibu Mkuu Ofisi ya Waziri Mkuu Prof. Faustine Kamuzora amewataka wafanyabiashara nchini kuhamasika kujiunga na mtandao wa mitaji ya ubia ili kuimarisha vitega uchumi vyao na pia kusaidia kuanzisha viwanda hapa nchini.

Profesa Kamuzora alisema hayo wakati akizindua Mtandao wa Mitaji ya Ubia Tanzania – Tanzania Venture Capital Network jijini Dar es salaam.

Aidha Katibu Mkuu huyo amesema uzinduzi wa mtandao huo umefanyika wakati mwafaka ambapo serikali ya awamu ya tano ipo katika mikakati ya kuigeuza Tanzania kuwa nchi ya viwanda,

Aliwataka wananchi kuacha uoga katika ushiriki wa kuwawezesha kuwepo kwa mitaji ya kutosha kwa ajili ya uimarishaji wa uwekezaji nchini Tanzania.

Alisema serikali kwa sasa inafanya kila linalowezekana kuhakikisha mazingira ya biashara na uwekezaji yanakuwa bora, ndio maana wameanzisha mchakato wa kutengeneza sera ya maendeleo ya viwanda hasa katika sekta binafsi.

Alisema ni vyema wenye viwanda na wananchi wengine kushiriki katika mchakato huo ili kufanikisha nia ya kuipeleka Tanzania katika nchi ya viwanda. Alisema kwa kuwa na sera sheria nyingi zitabadilika na hivyo kupunguza urasimu na pia vikwazo vya kuwezesha kazi katika masuala ya viwanda na biashara.

Pia alitaka wamiliki wa Ubia huo kushirikiana na Costech katika kuhakikisha kwamba viwanda vinaanzishwa na kuendelezwa.

Alitaka kuwepo na elimu ya fedha na mitaji ili wananchi waweze kuthubutu na kufanikisha mitaji.

Mapema Mwenyekiti wa Taasisi ya Sekta Binafsi nchini- TPSF Dr. Reginald Mengi amewataka wafanyabiashara kufanya biashara zao kwa uwazi, kwa kuzingatia sheria za nchi, na kuwa tayari kujifunza maarifa mapya kila fursa inapojitokeza.

Akisitikishwa na mahudhurio duni ya wafanyabiashara katika hafla hiyo alisema kutofahamu undani wa soko la mitaji na fursa zake kunatokana na kutokuwa wazi na kufanya biashara kwa kufuata kanuni.

Akizungumzia kuhusu madai ya kuwapo kwa hali kuwa ngumu nchini Dr. Mengi pia amewataka Watanzania kuichukulia hali hiyo kama fursa ya kubuni biashara itakayowawezesha kupata faida kubwa.

Akiutambulisha Mtandao wa Tanzania Venture Capital kwa wadau, Muasisi wake Bw. Salum Awadh amesema Mtandao huo ni fursa kwa wawekezaji nchini kujipatia mitaji ya kuanzisha ama kuendeleza biashara zao kwa ubia kwa masharti rahisi.

Alisema kwamba wakati umefika kwa Tanzania kusonga mbele kutumia fursa zilizopo duniani za mitaji na kusema jirani zetu wa Kenya wamesonga mbele katika hilo.

Alisema kwamba kutokana na kutojua umuhimu na ushiriki katika mitaji yenye ubia, wananchi wengi wanakimbilia katika mabenki ya biashara ambako pia wanapambana na vikwazo vingine.

Alisema kwa kuwa na kampuni ya mitaji inayoweza kutafuta pia mtaji inayomilikiwa na wananchi wenyewe kupitia mitaji yao kutawezesha kuwapo na uimara wa viwanda na kuongeza idadi zake kwa kuwa mfumo wa fedha wa mitaji ni tofauti na kwenda benki.

Tanzania kwa sasa ina zaidi ya mabenki 50 ambayo yanajishughulisha na mambo mbalimbali yanayogusa biashara na hifadhi ya kawiada.

Alisema mazingira ya sasa yanahitaji mfumo mwingine wa ziada kusaidia upatikanaji wa mitaji nje ya mabenki na kuzinduliwa kwa mtandao wa ubia wa mitaji kutasaidia kuziba pengo lililopo.

Kwa sasa Tanzania kwa rekodi zilizopo inapata asilimia 17 ya mitaji ya ubia ya dola bilioni 2.4 iliyopo duniani huku Kenya ikiwa na nfasi nzuri zaidi.

Hafla hiyo imehudhuriwa na Mkurugenzi Mtendaji wa Taasisi ya sekta Binafsi nchini-TPSF Bw. Godfrey Simbeye, baadhi ya viongozi wa taasisi za serikali na wafanyabiashara mbalimbali.

Pichani juu na chini ni sehemu ya wageni waalikwa waliohudhuria uzinduzi wa Mtandao wa Tanzania Venture Capital uliofanyika katika Hoteli ya Serena jijini Dar es Salaam.

Pichani juu na chini ni Mwenyekiti wa Taasisi ya Sekta Binafsi nchini- TPSF Dr. Reginald Mengi akisalimiana na kubadilishana mawazo na wageni waalikwa waliohudhuria hafla ya uzinduzi wa wa Mtandao wa Tanzania Venture Capital uliofanyika katika Hoteli ya Serena jijini Dar es Salaam.

Mwenyekiti wa Taasisi ya Sekta Binafsi nchini – TPSF Dr. Reginald Mengi akibadilisha na mawazo na Afisa Mtendaji Mkuu wa DOB Equity, Brigit van Dijk-van de Reijt wakati wa hafla ya uzinduzi wa wa Mtandao wa Tanzania Venture Capital uliofanyika katika Hoteli ya Serena jijini Dar es Salaam. Wengine ni Mgeni rasmi Katibu Mkuu Ofisi ya Waziri Mkuu Prof. Faustine Kamuzora (wa tatu kulia) pamoja na Mkurugenzi Mtendaji wa Taasisi ya sekta Binafsi nchini – TPSF Bw. Godfrey Simbeye (kushoto).

Tanzania Venture Capital Network – TVCN katika picha ya pamoja na mdau aliyewezesha kufanyika kwa uzinduzi wa Mtandao wa Tanzania Venture Capital uliofanyika katika Hoteli ya Serena jijini Dar es Salaam.