The Transparent Pricing Initiative in Tanzania has published standardized pricing data from 15 microfinance providers, representing an estimated 70% of Tanzania’s microloan borrowers. Launched in 2011 the Initiative is delivered in partnership with Planet Rating and TAMFI (the Tanzanian Association of Microfinance Institutions), and is funded by the MasterCard Foundation. Microfinance in Tanzania
Microfinance in Tanzania originated in the early 1990s when various NGOs and SACCOs started to provide microloan services to poor borrowers, mainly urban women. The sector has grown significantly since early 2000 as numerous banks and financial institutions provided increasing funding either directly to beneficiaries or through intermediary institutions. Despite this progress, it is estimated that microfinance service providers have a combined outreach of approximately 500,000 clients, which is only an estimated 5% of the total demand. The main microfinance service providers in Tanzania consist of downscaling commercial banks, rural and community banks, non-bank financial institutions, and SACCOs. Combined these institutions disburse around TZS 275 billion in gross loan portfolio.
Truth-in-Lending Legislation The Bank of Tanzania is responsible for regulating all microfinance service providers in the country except for NGOs, which are overseen by the Ministry of Finance. A number of policies and directives have been issued aiming to shape the regulatory and supervisory environment of the sector, including the National Microfinance Policy. Despite these reforms in the financial sector, legislation and guidelines concerning consumer protection are included neither in the national law nor the regulatory framework of Tanzania’s financial sector. The regulatory guidelines for microfinance also lack specific provisions targeting responsible lending practices and transparent disclosures when dealing with consumers of microfinance services.
Tanzania Institutions
| Institution | # Borrowers | Portfolio (US$) | Products | Transp. Index | Participating Since | Age of Data |
|---|---|---|---|---|---|---|
| ABT | 25,400 | 37,378,000 | 2 | 78 | 2012-May | 126 mos. |
| AKIBA | 26,900 | 36,852,000 | 4 | 42 | 2013-Aug | 139 mos. |
| BELITA | 5,800 | 492,000 | 1 | 29 | 2011-Dec | 139 mos. |
| BRAC Tanzania | 102,300 | 19,663,000 | 2 | 42 | 2011-Dec | 139 mos. |
| F & K Finance | 0 | 38,000 | 1 | 25 | 2011-Dec | 162 mos. |
| FINCA Tanzania | 78,400 | 31,517,000 | 3 | 94 | 2011-Dec | 122 mos. |
| FMFC | 1,500 | 392,000 | 6 | 40 | 2011-Dec | 139 mos. |
| K-Finance Ltd | 1,000 | 264,000 | 2 | 29 | 2011-Dec | 139 mos. |
| Mbinga | 1,000 | 2,986,000 | 3 | 12 | 2011-Dec | 139 mos. |
| MCBL | 3,600 | 2,837,000 | 6 | 34 | 2011-Dec | 139 mos. |
| MDF Tanzania | 600 | 148,000 | 1 | 20 | 2013-Aug | 139 mos. |
| NMB | 45,100 | 74,528,000 | 1 | 89 | 2011-Dec | 139 mos. |
| Opportunity | 8,600 | 3,018,000 | 3 | 41 | 2011-Dec | 139 mos. |
| PRIDE Tanzania | 104,400 | 33,321,000 | 3 | 26 | 2013-Jul | 139 mos. |
| PTF | N/A | N/A | Declined | - | ||
| Selfina | 8,000 | 3,773,000 | 2 | 36 | 2011-Dec | 162 mos. |
| Tujijenge Tanzania | 10,000 | 2,060,000 | 4 | 38 | 2011-Dec | 139 mos. |
| VF^Tanzania | 34,390 | 7,613,000 | 4 | 47 | 2013-Nov | 133 mos. |
| Victoria | 100 | 377,000 | 3 | 33 | 2011-Dec | 162 mos. |
| YOSEFO | 17,100 | 2,211,000 | 3 | 26 | 2011-Dec | 162 mos. |
