There is demand among SMEs for equipment, yet conventional banking products often fail to satisfy all stakeholders. This project aimed to develop financing solutions that could link providers of equipment with the small businesses that need them.

IPC was commissioned to create a standardised and systematic approach for selling such equipment directly to SME clients on credit. Specifically, IPC experts developed a risk management policy for a supplier of tractors and equipment. After conducting an analysis of the relevant legal frameworks for instalment sales and credit transactions in Tanzania, we used our SME credit expertise to revise the documentation and credit risk assessment techniques in place and then develop a credit sale manual.

On this basis, we formulated a proposal for a financing mechanism that can make modern, energy-efficient equipment more affordable. Longer terms, and thus lower borrowing costs, encourage greater utilisation of such equipment. Overall, these efforts support SMEs and equipment providers and translate into sustainable benefits for infrastructure and the economy as a whole.