Microfinance

Poverty rates in Tanzania are highest among rural families and more than 70% of the Tanzanian population lives in rural areas. It is difficult for these families to end the cycle of poverty because they lack access to financial resources needed to make productive investments. Small business opportunities in rural Tanzania include, but not limited to, crop farming, poultry, livestock, bee keeping and fish ponds.

Banks can provide loans. However, collateralized, high interest loans provided by conventional banks are out of reach for the poor who live on less than $1/day. This population lacks assets necessary for loan approvals from conventional banks. Other barriers to financial services include lack of formal employment and education.

Access to financial resources would enable rural families to invest in small businesses that yield sustainable incomes.

 

Mama Na Mwana Tanzania is working on helping the marginalized break the cycle of poverty through the provision of collateral-free startup loans to individuals with entrepreneurial potential.