Exporters and importers challenges in accessing banking facilities: the case of Kilimanjaro Region

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University of Dar es salaam
A lot have been written on the importance of bank sector when it comes to international business; yet, very little has been empirically said on the challenges/problems which focus on the way banking sector supports international business as far as Tanzania is concerned. Therefore, this research aimed at empirically finding out challenges facing importers and exporters in accessing banking facilities. Basing on the nature of the study and the time limit of the study, the study adopted non-probability sampling whereby 30 respondents were selected from bank staff. Information obtained was supplemented by information from 40 randomly selected customers (exporters and importers) from those banks. Coding and analysis of data was performed using SPSS software. The study analyzed data qualitatively and quantitatively using statistical technique (the most frequent value in the data set i.e. mode technique) hence produce the use of tables, charts and graphs. In the process of examining to what extent high charges such as high interest rates have been a challenge for banks in supporting international business, both the banks and the business people were on the same agreement that interest rates charged are not posing any problem or challenge whatsoever. The findings further show that collateral demand by banks is perceived by both bankers and borrowers as a problem. Instability of local currency (movement of exchange rates), was a big concern of importers and exporters as the threat of banking sector in supporting international business. From the findings, the study recommends that banks shouldn’t set collateral from borrowers as the best criteria before offering loans. Also the monetary authority and the government in general should exercise some control over exchange rates.
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International trade, Banks and banking, Customer services, Kilimanjaro region, Tanzania
Mbilinyi, A.R (2012), Exporters and importers challenges in accessing banking facilities: the case of Kilimanjaro Region, master dissertation, University of Dar es Salaam (available at