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MP touts for involvement of micro finance institutions

MP touts for involvement of micro finance institutions

Ms Devota Likokola made the appeal while closing the TAMFI General meeting over the weekend. She said, “It should be noted that Micro finance institutions offer great services to the citizens whom commercial banks often ignore due to their little financial capabilities or remoteness.”

She further decried costly credits from commercial banks as the biggest challenge that impedes the provision of services by micro finance institutions in villages in particular. Most microfinance institutions borrow from the banks to lend to the poor and unbanked at a higher rate.

The TAMFI however has prepared a programme to offer financial education to customers and the general public as a practical move to improve services to customers, especially TAMFI members. TAMFI Deputy Chair Joel Mwakitalu revealed the programme when presenting the strategic plan for the organisation to its just ended annual general meeting.

Together with measures to establish financial education programme for customers, TAMFI has developed a method of enabling member organization to be transparent about the cost of their services especially loans products, the premise being to allow customers understand costs before deciding to borrow.

TAMFI members have also agreed to start making loan agreements in Kiswahili to enable customers understand the legal documents. To increase openness, TAMFI has also become signatory to agency that champions transparency and accountability of prices and costs of small loans - Microfinance Transparency.

In 2010 season, TAMFI 49 member organizations issued loans worth over 400bn/- to 721,149 customers, with the loan amount expected to increase to 600bn/- issued to 800,000 borrowers in 2011, according to TAMFI Executive Secretary, Mrs Winnie Terry. TAMFI has about 49 member institutions providing credit services to farmers and entrepreneurs in all regions of Tanzania Mainland and Zanzibar.

This makes TAMFI the only financial network which is able to reach many Tanzanians especially in the villages. Among member institutions are PRIDE, FINCA, Tujijenge, FAIDERS, Changamoto, WEDTF, Mama Bahati Foundation, Mufindi Community Bank, Dar es Salaam Community Bank, Tanzania Women’s Bank, Mwanga Community Bank, SEDA Umoja SACCOS, Victoria SACCOS, Same Kaya SACCOS, Opportunity International, Tunakopesha, Heri Microfinance, Mtaji Microfinance and BELITA.

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Author: Daily News Reporter

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