Financial Sector Deepening Trust Fund (FSDT)

 The Financial Sector Deepening Trust (FSDT) is a consortium of five development partners: CIDA, DANIDA, DFID, SIDA, and the Royal Netherlands Embassy.  It was registered on 1st July 2004 and officially launched on 11th October 2005.

The FSDT has been established to channel development partner resources to support the development of pro-poor financial markets in response to the Government’s National Microfinance Policy and National Strategy for  Growth and Poverty Reduction, in Swahili known as "MKUKUTA".  By creating a single entity to do this, the five governments have ensured that they harmonise their efforts towards financial sector deepening and provide a single partner for the Government of Tanzania, beneficiaries of FSDT funding and other donors.  This provides greater efficiency for any potential counterpart seeking our support.

 The FSDT is essentially an investment fund of which the overall aim is to achieve greater access for more people to the financial sector in Tanzania.  In practice, this means identifying and funding investments and other projects that promote this objective.  In part, the Trust seeks to help smaller financial firms, especially microfinance institutions and small banks develop to the point where they are sustainable, credible and creditworthy partners for commercial banks and larger financial institutions.  Without this, the flow of finance from where it is currently in surplus to those under- or totally un-served will remain limited.  In addition, the Trust works to build capacity in service providers such as training institutions, accounting and auditing firms and the legal profession, as well as in the Bank of Tanzania and potentially other financial regulators.  There remain substantial gaps in knowledge and information about the financial sector in Tanzania, which represents another area on which the FSDT is concentrating.  We also support development of the policy, legal and regulatory frameworks relating to the financial sector as a whole.

 The FSDT can use a range of funding instruments: for weaker clients and other instances where appropriate, we will provide grants; for more established financial institutions, the FSDT will opt for loans (senior and subordinated debt), debt-equity hybrids such as convertible debt, preference shares or some combination of these.  The FSDT is not able to invest in common shareholders’ equity.

The office is located in:

 PPF Tower, 8th Floor, Wing No. 803
Corner of Ohio Street and Garden Avenue
P.O Box 4653
Dar es Salaam.

Phone: +255 (0)22 212 9060 –62
Fax:      +255 (0)22 212 9063

In the first instance, please contact:

Ian Robinson, Technical Director, ian@fsdt.or.tz, or

Sosthenes Kewe, Technical Manager, sosthenes@fsdt.or.tz