The MSME Impact Grant Fund (IGF) Launches to Support Women- and Youth-owned or Led Enterprises Across Mainland Tanzania and Zanzibar

Financial Sector Deepening Tanzania (FSDT), with funding from the European Union (EU) under the Inclusive Finance for Growth of Women and Youth MSMEs (F4G) Programme, has launched the MSME Impact Grant Fund (IGF), a catalytic financing facility designed to support the growth of high-potential women- and youth-owned or led Micro, Small and Medium Enterprises (MSMEs) across Mainland Tanzania and Zanzibar. The Fund will support eligible MSMEs that demonstrate strong growth potential, innovation, and the ability to generate inclusive economic impact. It will initially target enterprises operating in Morogoro, Manyara, Shinyanga, Rukwa, Kagera, Simiyu, Kigoma, Lindi, Mtwara and Singida, as well as Zanzibar Urban/West, Zanzibar North, Zanzibar Central/South, North Pemba and South Pemba.

Managed by KPMG Advisory Limited, the IGF will provide non-repayable grants of up to TZS 30 million, complemented by business development support to help participating enterprises strengthen operations, scale businesses, build resilience, and improve readiness to access future financing. The Fund will prioritize enterprises operating in sectors with strong potential to contribute to inclusive and sustainable economic growth, including climate-smart agriculture and agroforestry; sustainable fisheries and aquaculture; marine resource protection; sustainable food cold chains; renewable energy and clean technologies; circular economy and waste management; biodiversity and ecosystem restoration; and digital and innovative solutions supporting climate mitigation and adaptation.

"The Impact Grant Fund combines catalytic grant financing with targeted business development support to help enterprises grow, create jobs and strengthen their economic impact in their respective regions. By improving the investment readiness of women- and youth-led businesses, we aim to support sustainable livelihoods and expand their participation in Tanzania's economy," said Eric Massinda, Chief Executive Officer of FSDT.

Speaking on behalf of the European Union, Marc Stalmans, Head of Cooperation at the Delegation of the European Union to Tanzania and the East African Community, said: "The European Union is committed to promoting inclusive economic growth and expanding opportunities for women and young entrepreneurs. Through the Impact Grant Fund, we are investing in enterprises with the potential to grow, create jobs, strengthen local economies and contribute to a more inclusive and sustainable private sector."

Alexander Njombe, Managing Partner of KPMG, said: "KPMG is pleased to support the implementation of the Impact Grant Fund and ensure that participating enterprises receive both the financial resources and business support needed to achieve sustainable growth."

Applications for the first funding cycle are now open and eligible MSMEs operating in the Fund's priority sectors and geographical areas are encouraged to apply. The application process is available online in both English and Swahili to make the Fund accessible to entrepreneurs across the targeted regions of Mainland Tanzania and Zanzibar.

Interested MSMEs can access further information, eligibility requirements and the online application platform through the FSDT website: fsdt.or.tz/igf.