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Thursday, November 5, 2020

Absa Bank Tanzania empowers its SME customers with financial literacy in Dar.

Absa Bank Ohio Branch Manager, Ally Janja (left), in conversation with some banks small and medium enterprises customers during a training on issues related to financial skills organised by the financial institution in Dar es Salaam. 
Absa Bank Tanzania Relationship Manager, Farida Kamala (right), talking to banks small and medium enterprises customers during a training session on matters related to financial skills organised by Absa in Dar es Salaam.
Absa Bank Tanzania Head of Business Banking, Melvin Saprapasen speaking to participants during a training session hosted by Absa to its SME customers in Dar es Salaam.

By Staff Writer

Absa Bank Tanzania is finalizing the process of initiating a new product before the end of this year to serve the Small and Medium Entrepreneurs (SMEs) with affordable loans.

Farida Kamala, Absa Bank Tanzania, Relationship Manager, revealed the plan at a special workshop that brought the bank’s clients most of them being SMEs with businesses of a turnover range between 20million/- and 100million/- to have them educated on critical issues related to financial management so us they grow to big businesses.

The bank organized the event held in Dar es Salaam last week in collaboration with Deloitte that brought with it auditors, tax and finance experts to educate SMEs on critical issues they should consider to grow their businesses.

There was a delay for the bank to come up with products targeting SMEs due to a cross section of shortcomings. We are finalizing arrangements of the loan scheme for SMEs at least starting with those who manage a turnover of 50million/- annually. One need to bank with us for at least six months to qualify for the loans issued through this scheme” she explained.

About 200 SMEs were brought together at the workshop and got exposed to knowledge to bridge gap analysis in the angles of tax, audit, business plan, financial reporting and real time performance insights.

Most of SMEs being start-ups or family businesses fail because of credit risk expenditure and lack of knowledge to manage limited revenue growth, maintaining business continuity and succession arrangements” affirmed Kamala.

Addressing SMEs on tax related issues, Festo Bartholomew, Senior Manager Tax Deloitte, advised them on the importance of preparing and keeping accounting records of their businesses. He said that most small and medium businesses fail due to delay in tax payment hence creating accrued charges and penalties.

One of the key facts to make your business grow big is filling provisional and income returns of every quarter even those of minor expenses related to the referred business. SMEs must build the culture of tax planning to determine your effective tax rate margin. Consultation of experts is needed to protect yourself from getting into problem with the revenue authority by incurring unnecessary penalties” he warned.
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