The Tanzania Association of Microfinance Institutions (TAMFI) has announced that 48 of its member microfinance institutions (MFIs) have adopted a code of conduct. Winnie Terry, TAMFI Executive Secretary, was quoted as having said, “With this code of conduct, TAMFI members are expected to take a leading role to deliver high quality and responsible financial services to the community. The code is intended to make Microfinance Institutions become more responsive to the clients they serve.”
MFIs adopting this code of conduct are required to disclose interest rate and other service costs to customers through loan contracts, advertisements, brochures and notice boards. Lenders are required to provide clear and understandable loan contracts prepared in Swahili, as well as verbal explanations, especially to those who cannot read. Institutions are also required to explain the consequences of late loan payments and non-repayment. TAMFI is encouraging customers to raise concerns about MFIs that fail to follow these guidelines by contacting a hotline it has set up for this purpose: +255 0764 668 331.
Some of the MFIs subscribing to the code of conduct are Tujijenge Tanzania Limited, African Microfinance, Promotion of Rural Initiative and Development Enterprises Limited (PRIDE), Dar-es-Salaam Community Bank, Akiba Commercial Bank, Small Enterprise Development Agency (SEDA), Youth Self Employment Foundation (YOSEFO), Presidential Trust Fund (PTF), Small Entrepreneurs Loan Facility (SELF), K-Finance and Facilitation for Integrated Development and Relief Services (FAIDERS).
The text of the code of conduct is not available.
By Kristha Abores, Research Associate
About Tanzania Association of Microfinance Institutions (TAMFI):
The Tanzania Association of Microfinance Institutions (TAMFI) aims to support the capacity development of microfinance institutions in Tanzania through lobbying, advocacy, training and the gathering and dissemination of information. As of January 2012, it has approximately 48 member institutions. The Coalition of Tanzanian Microfinance Practitioners and Service Providers Limited merged with TAMFI in July 2010.
Sources and Additional Resources:
[1] “Microfinance institutions adopt code of conduct,” http://dailynews.co.tz/index.php/biz/806-microfinance-institutions-adopt…
MicroCapital.org article, April 11, 2011, “MICROCAPITAL BRIEF: Indian Microfinance Network Sa-Dhan Introduces Code of Ethics,” https://www.microcapital.org/microcapital-brief-indian-microfinance-network-sa-dhan-introduces-code-of-ethics/
MicroCapital.org article, September 13, 2010, “MICROCAPITAL BRIEF: Iraqi Microfinance Institutions (MFIs) Agree to Code of Ethics at Inaugural Iraqi Microfinance Industry Network Meeting,” https://www.microcapital.org/microcapital-brief-iraqi-microfinance-institutions-mfis-agree-to-code-of-ethics-at-inaugural-iraqi-microfinance-industry-network-meeting-2/
MicroCapital Universe Profile: Tanzania Association of Microfinance Institutions (TAMFI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+Tanzania+Association+of+Microfinance+Institutions+%28TAMFI%29
MicroCapital Universe Profile: PRIDE Tanzania, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PRIDE+Tanzania
MicroCapital Universe Profile: Akiba Commercial Bank (ACB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Akiba+Commercial+Bank
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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