As an investment of EFA, EFTA Limited is a Tanzanian equipment finance company specializing in serving small and medium enterprises and farmers. EFTA focuses on equipment loans of up to US$ 60,000 with no collateral except for the equipment itself.
EFTA is the first company in Tanzania seeking to employ financial leasing to boost employment levels in the country and bring business growth opportunities to the “missing middle”. Africa’s private sector is heavily made up of informal small enterprises who lack the formality and collateral requirements sought by commercial banks and therefore lack access to the finance they require to grow their businesses.
EFTA’s zero collateral requirement addresses one of the key constraints on small enterprise borrowing levels, allowing our customers to pursue more ambitious growth plans. We are headquartered in Moshi and have offices across the country, serving entrepreneurs within a two-hour drive time of these offices.
EFTA is the first company in Tanzania seeking to employ financial leasing to boost employment levels in the country and bring business growth opportunities to the “missing middle”. Africa’s private sector is heavily made up of informal small enterprises who lack the formality and collateral requirements sought by commercial banks and therefore lack access to the finance they require to grow their businesses.
EFTA’s zero collateral requirement addresses one of the key constraints on small enterprise borrowing levels, allowing our customers to pursue more ambitious growth plans. We are headquartered in Moshi and have offices across the country, serving entrepreneurs within a two-hour drive time of these offices.
Business philosophy
EFTA has a social mission, but we believe in business: both as the solution to poverty, and as the best method to get there. EFTA, aims to be the most efficient small business investor in the market, focusing on smart evaluation of risks and patient returns on capital.
Benefits to Tanzania
EFTA’s business model can have a transformative impact on Tanzania’s economy as a whole and drive inclusive growth. Many of EFTA’s customers would not be able to borrow as much as they need from the banks as they do not have enough recognised collateral, and many others would not qualify for bank lending at all.
EFTA’s business model
We use a standardised approach to keep costs low and allow operational scalability. This reduces negotiation time and management oversight and makes it easier to resource new applications.
Is this the same as microfinance?
Microfinance is currently a controversial topic. Many social investors remain strong defenders of microfinance, while others look at reports of over-indebtedness or doubts about the ability of micro-loans to drive economic growth. EFTA is crucially different from microfinance as it has come to be understood, because our investments are exclusively in capital assets that fuel economic growth.
EFTA has a social mission, but we believe in business: both as the solution to poverty, and as the best method to get there. EFTA, aims to be the most efficient small business investor in the market, focusing on smart evaluation of risks and patient returns on capital.
Benefits to Tanzania
EFTA’s business model can have a transformative impact on Tanzania’s economy as a whole and drive inclusive growth. Many of EFTA’s customers would not be able to borrow as much as they need from the banks as they do not have enough recognised collateral, and many others would not qualify for bank lending at all.
EFTA’s business model
We use a standardised approach to keep costs low and allow operational scalability. This reduces negotiation time and management oversight and makes it easier to resource new applications.
Is this the same as microfinance?
Microfinance is currently a controversial topic. Many social investors remain strong defenders of microfinance, while others look at reports of over-indebtedness or doubts about the ability of micro-loans to drive economic growth. EFTA is crucially different from microfinance as it has come to be understood, because our investments are exclusively in capital assets that fuel economic growth.