The Small Entrepreneurs Loan Facility (SELF) project, which is a wholesale microfinance lending project jointly funded by the Tanzanian Government and the African Development Bank has made loans to three Tanzanian savings and credit cooperative societies (SACCOS). Andrew Bibby:
http://www.andrewbibby.com/socialenterprise/tanzania.html
Microfinance Gateway:
http://www.microfinancegateway.org/content/article/detail/43226
SELF signed loan contracts with Wafanyabiashara SACCOS of Njombe which received USD 120,481, Same Teachers SACCOS which received USD 116,465 and KIMAKIM SACCOS of Mang’ula, Kilombero district which was lent USD 47,389. The purpose of loans is to boost the income-generating activities of the co-operatives’ members.
The Savings and Credit Cooperative Societies (SACCOs) of Tanzania are a network of credit unions. There are about 1,400 registered SACCOs, ranging from community-based initiatives recruiting members who work in the informal economy to workplace-based groups.
SELF was founded eight years ago with the purpose of providing loans to microfinance institutions (MFIs) such as NGOs, SACCOS and community banks who use the money for onward lending to rural and urban underserved entrepreneurs. Its services are executed by the Ministry of Planning, Economy and Empowerment through the Poverty Eradication Division.
As at end of June 2007, the project had disbursed credit funds amounting to USD 8.6 million for onward lending to a total of 158 microfinance institutions in the country. This activity means SELF reaches 83 districts on the Tanzanian mainland and 10 in Zanzibar.
As a result, the government intends SELF to transform itself into an independent microfinance institution, rather than continuing as a government-managed project. With this transformation the organisation would then be able to expand its outreach to other regions of the country that have not so far been reached as well as consolidating its provision of financial services in current areas.
Amy Rennison, Microcapital writer
Additional Resources:
Daily News:
http://www.dailynews-tsn.com/page.php?id=8533
IPP Media:
http://www.ippmedia.com/ipp/guardian/2007/09/08/97966.html
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