Tanzania is one of the poorest countries in the world, with a per capita GDP of just $1,400. The economy depends heavily on agriculture, which accounts for 27.1% of the GDP, provides 85% of exports, and employs 80% of the work force. The World Bank, the IMF, and bilateral donors have provided funds to rehabilitate out-of-date economic infrastructure and to alleviate poverty.
Recent banking reforms have helped increase private-sector growth and investment. Continued donor assistance and solid macroeconomic policies supported a positive growth rate, despite the world recession in 2009.
FINCA’s Village Bank loans empower women, inculcating leadership skills and confidence in them. Our loans further the government’s poverty reduction strategies by allowing communities access to better medical services, food and education, particularly improving the wellbeing of people in rural areas.
Climate for microfinance:
• Tanzania is one of the most peaceful and stable countries in Africa
• Banking reforms have helped increase private-sector growth and investment
• FINCA has grown its client base by over 200% since 2001 by expanding to cover 60% of the country and introducing new products
FINCA Tanzania (Founded 1998)
FINCA Tanzania currently operates 25 branches country wide: Dar es Salaam and the coastal region, Morogoro, Dodoma, Ifakara, Iringa, Mbeya, Njombe, Mwanza, Mara, Shinyanga, Tabora, and Bukoba; it now covers about 40% of the country overall, including 65% in population centers.
In 2013 FINCA Tanzania has become the first microfinance institution in the country to transform from a non-regulated organization to an entity regulated by the Bank of Tanzania. This change in status will make it possible for even more Tanzanians living in rural areas access to formalized banking services.
Meet Evelyn Karata: From Crushing Stones to Computers
FINCA TanzaniaClients: 80,192
Village Banking Groups: 3,613
Average loan: $481
Loans outstanding: $25,412,467
On-time repayment: 97.2%
Services: Village Banking and business loans, microinsurance, savings
Geography: An East African country more than twice as large as California, Tanzania has a long Indian Ocean coast and borders Zanzibar, Burundi, D.R. Congo, Kenya, Malawi, Mozambique, Rwanda, Uganda, and Zambia.
Population: 41.9 million
Ethnicities: native African 99% (95% are Bantu consisting of more than 130 tribes), other 1% (Asian, European, and Arab)
Religions: Christian 30%, Muslim 35%, indigenous beliefs 35%
Average life expectancy: 52.5 years
Median age: 18.3 years
Literacy: 69.4 percent
* Program information is updated on a monthly basis from reports from the field.