Our Correspondent | Africa Guardian
Dar es Salaam – The Tanzania Association of Microfinance Institutions (TAMFI) convened an impactful advocacy meeting on October 4, 2024, in Dar es Salaam, bringing together stakeholders from across the microfinance sector to discuss ways to improve financial inclusion and address the challenges facing the industry. The meeting, held at Seashells Millennium Hotel, aimed to evaluate the contributions of microfinance institutions to the nation’s economy and to explore strategies for enhancing the efficiency of the microfinance sector in Tanzania.
Addressing the meeting, TAMFI Board Chairperson Devotha Minzi emphasized the importance of recognizing the vital role played by microfinance institutions, particularly TAMFI members, in providing loans to those underserved by larger financial institutions. “Our primary goal is to ensure that the microfinance services we provide reach individuals who are unable to access credit from commercial banks,” Minzi said. She highlighted the increasing demand for microfinance services in the country, noting that the growth in loans provided by TAMFI members reflects this need.
Minzi also stressed the importance of addressing the challenges raised by some clients to improve service delivery and enhance the public perception of the microfinance sector. Among the issues discussed were the high costs of lending, adherence to responsible lending practices, and effective loan recovery methods. “While our sector plays a key role in promoting financial inclusion, we must also address the complaints and concerns of our clients to provide efficient services and build a positive reputation,” she added.
A significant part of the meeting included the presentation of TAMFI’s Code of Conduct, which outlines best practices for transparency in loan costs, confidentiality of client information, and effective dispute resolution. TAMFI aims to differentiate its members from other lenders through a commitment to ethical standards. The meeting also underscored the need for all microfinance institutions to comply with the guidelines set by the Bank of Tanzania (BoT) to maintain transparency and accountability across the sector.
Winnie Terry, CEO of TAMFI, echoed these sentiments, emphasizing the potential of the microfinance sector to drive economic growth. “Microfinance institutions are crucial for the nation’s development as they provide essential financial services to many people who cannot easily access conventional banking services. We must work together to overcome the challenges facing the sector and ensure that our services continue to benefit communities,” Terry said. She urged all stakeholders to uphold ethical standards to enhance the sector and bring about positive change in society.
Roymez Kway, Accountant at BK Finance Limited, described the meeting as an excellent opportunity to strengthen collaboration among microfinance service providers and improve customer service. During the meeting, several clients shared their success stories, highlighting how microfinance services had helped them transform their lives by increasing their income, educating their children, and investing in economic ventures like farming and livestock.
Clients who shared their testimonials spoke passionately about the positive impact of microfinance on their lives. One client mentioned how the loan enabled her to expand her small farming business, allowing her to increase her income and send her children to school. Another client highlighted how microfinance helped him start a livestock project, which has since grown to provide a stable income for his family. Many clients emphasized that access to affordable loans had not only improved their financial stability but also helped them build discipline in managing their finances. “These loans have given us hope and the means to create a better future for our families,” one client stated.
The advocacy meeting concluded with a commitment from microfinance service providers to work closely with stakeholders, including clients and the government, to address the sector’s challenges and improve the quality of financial services provided. TAMFI remains dedicated to supporting its members and promoting financial inclusion across Tanzania.
___