Micro-finance operators in Tanzania function within the framework of the Government’s National Micro Finance Policy of 2000. The objectives of this policy are to provide the basis for the evolution of an efficient and effective micro-finance system to serve the low segment of society and contribute to economic growth and poverty reduction (as described in MIT, 2002). The policy establishes a framework within which micro-finance operators will develop, lays out the principles to guide operations of the system, defines roles and responsibilities of actors, and provides guidelines for coordinating mechanisms. The Central Bank was given the mandate to coordinate implementation of the policy. It is interesting to note that the Micro Finance Policy includes “gender equity” as a best practice.
Access to financial services should be available to both men and women. In order to achieve gender equity in the delivery of services, it may be necessary to make special efforts to incorporate features that make the services accessible to all. (National Micro Finance Policy, 2000, pp. 11-13).
There are a number of micro-finance operators in the country (the major ones are highlighted in Table 6) and, although a number of key informants stated the view that micro-financing is plentiful, most MFIs operate in urban areas with relatively welldeveloped infrastructure, thereby denying access to rural MSEs and those in backward regions (UDEC, 2002). Key informants reported that micro-credit operators had recently formed the Tanzania Association of Micro-Finance Institutions (TAMFI), with support from the Swedish International Development Agency (SIDA). At this point, however, there is no collective data on micro-finance clients, no evidence of systemic performance evaluations of the micro-finance industry, and a great need for sharing of good practices in managing micro loan funds.
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