EU-Backed Inclu-Cities Project Pumps Over TZS 1 Billion Into Mwanza and Ilemela SMEs in Bold Push for Jobs and Economic Growth
A new wave of opportunity is unfolding for small and medium-sized enterprises (SMEs) in Tanzania as the Government, in collaboration with the European Union, rolls out a transformative funding initiative under the Inclu-Cities project. Designed to unlock the potential of local entrepreneurs, the program is injecting more than TZS 1.018 billion into businesses across Mwanza City and Ilemela Municipality—signaling a major step toward inclusive economic growth, job creation, and sustainable urban development.
At a time when access to affordable capital remains one of the biggest challenges facing entrepreneurs, this initiative arrives as a timely intervention. Through a blend of grants and soft loans administered by CRDB Foundation, the program seeks not only to finance businesses but to nurture them into resilient, scalable enterprises capable of driving long-term economic impact.
The initiative specifically targets entrepreneurs who have already undergone business training and demonstrated the viability of their ventures. These are not startups in the early idea phase, but rather growing businesses with clear potential for expansion, job creation, and contribution to the local economy. By focusing on “investment-ready” enterprises, the program aims to maximize the impact of every shilling disbursed.
Speaking during an awareness and sensitization meeting held on March 17, 2026, the Ilemela Municipal Development Officer, Ahmed Ssakibo, delivered a strong message to entrepreneurs: this is an opportunity that must not be taken lightly. He emphasized the importance of using the funds responsibly and strategically.
“I have full confidence that those who will benefit from these grants and soft loans will channel the funds into the intended purposes—expanding their businesses and strengthening their economic activities,” he said. “This is not just about receiving money; it is about transforming livelihoods, creating jobs, and contributing to the broader development of our communities.”
His remarks underscore a central theme of the Inclu-Cities project: accountability and impact. Beneficiaries are expected to demonstrate not only financial discipline but also a clear vision for growth and sustainability.
The Inclu-Cities initiative is part of the broader SASA program funded by the European Union. It represents a strategic partnership between international development partners and the Tanzanian government, with a shared goal of addressing urban challenges through inclusive economic solutions. Beyond financial support, the program is structured to enhance infrastructure, strengthen local economies, and expand employment opportunities—particularly in rapidly growing urban centers like Mwanza.
Importantly, the project is not limited to Mwanza and Ilemela. It is also being implemented in Tanga City and Chakechake Municipality in Pemba, reflecting a broader national strategy to stimulate economic activity across multiple regions. However, Mwanza and Ilemela have been allocated a significant share—40 percent of the total funds—highlighting their strategic importance and the scale of opportunity within these areas. Tanga and Chakechake will each receive 30 percent of the funds, ensuring a balanced distribution that supports growth across different parts of the country.
For entrepreneurs eager to access the funding, the process is both competitive and structured. Applicants are required to prepare detailed, bankable business proposals that clearly outline their business models, growth strategies, and financial projections. These proposals are then submitted to CRDB Foundation, where they undergo rigorous evaluation.
CRDB Foundation, a subsidiary of CRDB Bank, plays a central role in the implementation of the program. Working in partnership with Enabel, the Belgian development agency, the foundation is responsible for managing the disbursement of funds and ensuring that only eligible, high-potential businesses receive support. This partnership brings together financial expertise and development experience, creating a robust framework for delivering impactful results.
The overarching objective of the Inclu-Cities project goes beyond individual business success. At its core, the initiative is about creating jobs and expanding economic opportunities, particularly for groups that often face systemic barriers—youth and women. By prioritizing businesses owned or operated by these groups, the program aims to foster a more inclusive economy where growth is shared and opportunities are accessible to all.
Additionally, the project places a strong emphasis on key sectors such as fisheries and the circular economy. These sectors are not only vital to the local economy but also hold significant potential for innovation, sustainability, and long-term growth. By channeling resources into these areas, the program aligns economic development with environmental responsibility and resource efficiency.
The selection of beneficiaries has been conducted in close collaboration with key business associations, including the Tanzania Women Chamber of Commerce (Mwanza branch) and the Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA). This collaborative approach ensures that the process is transparent, inclusive, and grounded in the realities of the business community.
During the sensitization meeting, CRDB Foundation Officer Hafsa Msonga provided detailed insights into the eligibility criteria. She emphasized that only businesses operating within Mwanza City and Ilemela Municipality would qualify for this particular funding window.
“This funding is specifically designed to support businesses run by youth and women, as well as those owned by men who are actively creating employment opportunities for young people,” she explained. “We are looking for businesses that are not only profitable but also socially impactful.”
Her statement highlights the dual focus of the program: financial viability and social contribution. It is not enough for a business to generate profit; it must also play a role in addressing broader socio-economic challenges, particularly unemployment.
To ensure fairness and effectiveness, all applications will be reviewed by a dedicated loan committee. This committee comprises representatives from local government authorities, business development experts from the Inclu-Cities project, and officials from CRDB Foundation. Their role is to carefully assess each proposal and determine the most appropriate form of support—whether a grant, a soft loan, or, in some cases, no funding at all.
“The objective is to match the right type of financing with the right type of business,” Msonga noted. “Some businesses are better suited for grants, while others are in a position to benefit more from soft loans. Our goal is to make those distinctions clearly and fairly.”
Beyond financial assistance, one of the most valuable aspects of the Inclu-Cities project is its focus on capacity building. Recognizing that access to capital alone is not enough, the program includes components designed to strengthen the financial management skills of entrepreneurs.
Beneficiaries will receive support in establishing proper financial systems, including the use of formal bank accounts and the maintenance of accurate business records. This may seem like a basic requirement, but for many small businesses, it represents a significant shift toward professionalism and sustainability.
Lilian Tibenda, a business development expert with the project, emphasized the importance of this component.
“Proper record-keeping and the use of formal banking systems are critical for any business that wants to grow,” she explained. “They allow entrepreneurs to clearly understand their income, track their expenses, and make informed decisions. More importantly, they build a financial history that can open doors to future funding opportunities.”
Indeed, one of the long-term benefits of the program is its potential to integrate SMEs into the formal financial system. By developing credible financial records, businesses become more attractive to banks and other financial institutions, increasing their chances of accessing larger loans and investment in the future.
As the application process gains momentum, anticipation is building among entrepreneurs in Mwanza and Ilemela. For many, this initiative represents more than just financial support—it is a chance to break through long-standing barriers, scale their operations, and realize their full potential.
However, with opportunity comes responsibility. The success of the Inclu-Cities project will depend not only on the efficiency of its implementation but also on the commitment of its beneficiaries. Entrepreneurs must approach this opportunity with seriousness, discipline, and a clear vision for growth.
If executed effectively, the program could serve as a model for similar initiatives across the country and beyond. It demonstrates how targeted investment, combined with capacity building and strategic partnerships, can create meaningful and lasting impact.
In a rapidly changing economic landscape, initiatives like Inclu-Cities offer a blueprint for inclusive development—one that empowers individuals, strengthens communities, and drives sustainable growth from the ground up.
As Mwanza and Ilemela step into this new chapter, the message is clear: the future of economic transformation lies not just in large-scale investments, but in empowering the small and medium enterprises that form the backbone of the economy. And with over TZS 1 billion now within reach, that future is closer than ever.
