DAR ES SALAAM, Dec. 9 -- THE Bank of Tanzania (BoT) is laying the groundwork for a new Credit Guarantee Public Limited Company that will help small and medium-sized enterprises (SMEs) access loans more easily, in a move expected to stimulate business growth and strengthen the countrys economy.

BoT Governor Emmanuel Tutuba announced the plan during a meeting with heads of financial institutions at the central bank offices in Dar es Salaam.

He said the company will play a critical role in reducing the risk faced by lenders, allowing more entrepreneurs, especially small business owners, to qualify for financing.

Tutuba highlighted global success stories, pointing to Malaysia, which has operated a credit guarantee company for more than fiv...