In an effort to promote entrepreneurship, create employment and increase opportunities for Tanzanians to participate fully in economic activities, NEEC entered into a guarantee framework agreement with TIB Development Bank Limited, to create a Fund which will enable extension of concessionary loans and provision of credit guarantee to borrowers in Tanzania Mainland. The Scheme is geared towards promoting and supporting the Young Graduate Entrepreneurs, Small Medium Enterprises (SMEs) and Cooperatives which have a significant role in the economy, by creating enabling environment for expanding and facilitating access to financing requirements.

Generally, the Scheme shall target issuance of guarantees in respect to credit facilities granted by TIB for manufacturing, agriculture, trading and service provision projects that are geared to promote the growth of the economy. Therefore, the following specific criteria shall apply for young graduate entrepreneurs;-

Key issues


Maximum Credit

Not exceeding TZS 50 million.

Eligibility Requirements

  1. Having passed the Young Graduate Entrepreneurship Clinic run by the Council.
  2. Formally registered entity and owned by Tanzanian citizens.
  3. Having viable commercial projects, which are the basis of requesting the credit facility.
  4. Ready to offer any enforceable collateral including their personal guarantee, with the condition of allowing assignment of such collaterals to the Fund.
  5. Having applied for a credit facility from TIB relating to eligible projects on which TIB has sought a guarantee cover from the Council.



Guarantee coverage for loans will not exceed 36 months


  1. University Certificates or its equivalent.
  2. Assets financed by the guaranteed credit facility (pledged or hypothecation).
  3. Assets under lease arrangements.
  4. Insurance cover with a reputable insurer.

Guarantee Fees

The guarantee fees shall be 4% of the total outstanding credit issued.

Interest Rate on Loan

Interest rate to be charged by TIB will be 16% reducing balance per annum.

Mode of operation

Provision of loans for young graduates

  1. The graduates who participated in the NEEC/UDEC entrepreneurship training program in May 2013 are advised to send their applications/proposals to NEEC from December 2014 for preliminary scrutiny and onward transmission to TIB for further action
  2. Other graduates

NEEC in collaboration with Higher learning institutions is planning to conduct entrepreneurship training for young graduates in 2015. Advertisement for invitations to participate in these training programs will be made one month before commencement of the trainings. The  graduates who will successfully complete the course will be eligible for loans provided by TIB under this Agreement                          


For more information contact the following:

National Economic Empowerment Council (NEEC)             TIB Development Bank Limited

12 Kivukoni Front,                                                                Building Office No. 3,

P.O. Box 1734,                                                                      Mlimani City Office Park,

Dar es Salaam                                                                     Sam Nujoma Road, Ubungo

TANZANIA                                                                             P. O. Box 9373          

+255 (22) 2125596                                                               Dar es Salaam                                                        TANZANIA                                                             +255 (22) 2411101-2                                                          

+255 (22) 2411108-9