Equity for Africa Limited (EFTA Ltd)
EFTA was originally set up in 2003 by Equity for Africa Limited, to manage their social investments in Tanzania in partnership with local management consulting company Bumaco Limited. The purpose was to create sustainable employment by enabling small businesses to access finance. EFTA financed its first lease in 2004, and over the following five years they invested a total of $465,000 across 75 investments in small businesses from their first branch in Moshi.
EFTA Ltd is a Tanzanian finance company specialised in serving small and medium enterprises and farmers. They focus on equipment loans of up to USD 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 their customers to pursue more ambitious growth plans. They are head-quartered in Moshi and have offices across the country, serving entrepreneurs within a two-hour drive time of these offices
EFTA has a social mission, but they 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.