The Tanzania economy has received over USD 15 million in investment funds from the Pan-African credit provider, Bayport Financial Services, who has done so in the form of granting loans to its client base within the country.
According to the company’s website, Bayport Financial Services creates a selection of client-focused financial solutions in order to “give those in emerging markets the opportunity to obtain capital quickly and efficiently.”
Current reports indicate that, to date, Bayport Financial Services has provided over one million loans to at least 250,000 clients totaling more than USD 500 million, of which Tanzania has received USD 15 million that has been extended to over 22,000 clients throughout the country.
Along with its shareholders, the National Investment Company (NICOL), ‘Afrika Yetu’ and Equal Opportunities for All Trust Fund (EOTF), who together hold 40 percent of the company’s shares, Bayport Financial Services has spread to 13 of the Tanzania mainland regions and currently boasts 16 branches throughout the country.
In addition to its hubs in Tanzania, Bayport Financial Services also has branch locations in South Africa, Ghana, Zambia and Uganda, operating out of a total 235 branches and employing over 2,557 people.
Plans are currently also underway for Bayport to open new offices in Malawi, Nigeria and Rwanda.
According to a recent report in the East African Business Week, the Bayport Marketing and Public Relations Manager, Hamidu Ahmed Bisanga, has indicated that the company is able to provide its services through using joint venture arrangements with local companies within the country of operations.
Mr. Bisanga recently told journalists in Dar es Salaam that the role of his organization was similar to other micro-lending organizations in that their goal is to provide low-income clients, including consumers and the self-employed, with loans that are appropriate for their needs.
At this time, the loan interest rates for the company span from 2 percent interest for a long-term loan extended over a 60 month timeframe, to 10 percent for a one month loan.
According to Mr. Bisanga, Bayport Financial Services offers its individual clients unsecured credit without the need for collateral or any other securities bar.
Mr. Bisanga went on to say that the company’s methodology for providing credit both to employed individuals and to groups of employees was to utilize payroll deduction techniques.
“Careful choice by Bayport has provided the opportunity for those in the emerging markets to access loans easily and efficiently within 24 hours,” he said as reported by East African Business Week.
Bayport Financial Services is currently working to develop plans to open 18 additional satellite branches throughout Tanzania.