Partners:

• Mama Bahati Foundation (MBF), Iringa, Tanzania
• Anglican Diocese of Ruaha

Program Type and Services:

• Christian Microfinance Institution: “Credit Led”

This program provides microcredit based on the Solidarity Group model, as well as two savings services.

Compulsory Savings: Required from the date a loan is disbursed (i.e., no pre-saving is required, which differentiates MBF from other microfinance providers in the local area).  This currently amounts to 30% of the amount loaned, however this is currently under review by the MBF Board.

Flexible Savings: These began when clients in rural areas requested the option to save more during certain times of the year, and are usually withdrawn in December or January for school fees and the start of seasonal agricultural activities.

Currently, all client savings collected by MBF are held in a separate bank account and not used as loans.  This has been the case to date due to Bank of Tanzania regulations restricting the use of savings.  Future financing options might include re-loaning these funds if regulations are met.

Training and Resource Examples:

• Entrepreneurship and business development.

The Community

Tanzania is one of the poorest countries in the world, with a population of 39 million people and an average per capita income of $1,000 per year. Iringa is a town in central Tanzania with a population of approximately 115,000 people, many of whom rely on small enterprises to provide an income for themselves and their families.

96.6% of the population live on less than $2 a day and 85.8% of the female population is economically active in some form. Almost all adults (96%) are engaged in the informal sector and 54% of all adults have no access to financial services. Commercial banks offer consumer loans at around 20% interest.

The Program

The Mama Bahati Foundation (MBF) was registered as an NGO in February 2006, providing microfinance services to women in and around Iringa. The project was the 'brain-child' of the retired Archbishop of Tanzania and was named after Mama Bahati, a woman who runs a small banana selling business. It took a loan of just $8 to break the unproductive credit cycle she was in with her former market seller and allow her to buy enough stock to make a profit large enough to repay the loan and grow over time.

Unlike Five Talents' other projects, the clients of MBF are solely women and the plan is to continue outreach to women in new communities as well as expand their target client base to include youth.  Women have historically proved to be more successful in repaying loans and prioritizing the needs of the family.  The program encourages women to start small enterprises as a means of gaining an income, independence and dignity both in the home and within the community.  The local staff hold daily “cluster” meetings for groups coming from different parts of the town, enabling them to save and repay on a weekly basis.

The Need

Staff retention and training are needs for this program.  Once staff members gain experience, the challenge in the microfinance sector in Iringa is to retain staff and keep motivation levels high, to prevent ‘poaching’ by other microfinance institutions in the area.  We hope to see 4,010 clients in the program by the end of 2012.  Please join us in praying for these needs today.

2012 Funding Request:

• $156,669
• Cost per member to provide Five Talents' holistic services: $39.07

Help us empower the citizens of Tanzania with the capacity to improve their lives by supporting this Five Talents International program. You will be fighting poverty, creating jobs and transforming lives!

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