Supporting marginalized communities in Tanzania
ENGISHON MICROFINANCE LIMITED (ENGISHON) is a social enterprise working to improve the quality of life for pastoralist communities through the provision of innovative, inclusive and affordable financial services. The served communities have traditionally been marginalized from the formal financial systems for being ‘uneconomical to serve and/or too difficult to reach.’ The financial exclusion, combined with adverse climate, cultural marginalization of women and inflexible dependency on livestock keeping as the economic mainstay makes them one of the most vulnerable groups not just in Tanzania but globally.
Intiatives
- Savings Groups
- Herders Insurance Scheme
- Livestock Marketing information Service
- Mobile Money Transfer Services
- Value Addition and ProcessingHerders Insurance Scheme
Savings Groups: A savings group is a self-formed and informally operated club of small savers and borrowers who gather together on a regular basis to save money collectively and make loans to members out of their accumulated funds. The groups are often found in rural areas where formal banking services are not available. In Tanzania, according to Tsimba (2006), an estimated 3 million people belong to more than 200,000 savings groups which he refers to as ‘common initiative groups’ (CIGs). According to Mkandawire (2001), studies conducted in South Africa, Namibia, Zimbabwe and Botswana have shown that if properly managed, savings groups can have significant impact on poverty alleviation. For example, in South Africa it was estimated that by 1997 there were about 12,000 stokvels with over 1 million members with total assets under management exceeding R1 billion (US$130 million). In Zimbabwe, estimates indicate that in 1998 there were about 10,000 village banks with over 400,000 members holding assets amounting to ZW$50 million (US$5 million)
Herder’s insurance scheme: The scheme is designed to cover loss of life due to wild animals predation or accidents while grazing and helping with other income generating activities such as transport using donkeys. It also covers damage or loss of property due to fire outbreaks
LIVESTOCK MARKETING INFORMATION SERVICE: The livestock marketing information service is a mobile phone-based system that disseminates timely information on prices of veterinary drugs and services, feedstuff and other farm inputs as well as prices of livestock and livestock products in selected markets
Mobile Money Transfer Services: The mobile money transfer service allows customers to send and receive money using their mobile phones. This is done through a network of agents who are physically present in communities across Tanzania. The service is currently being piloted by four commercial banks
Value Addition and Processing: Value addition increases the value of raw materials or semi-processed products through processing into finished products. This can be done through simple processes such as cleaning, grading or packaging which add value without altering the physical state of the product too much. More complex processes may include milling flour or manufacturing furniture
These are some of the ways you can support marginalized communities in Tanzania. By supporting these programs, you can help alleviate some of the financial burdens these communities face.
Disclaimer – As a member of a social media group, it’s important to acknowledge that what is shown on our online platform may not always reflect the full scope of our actions and initiatives. We strive to share updates and information with our followers, but there may be some details left out. We encourage anyone who wants to know more about our projects or involvement in the community to reach out directly. It’s important for us to keep an open line of communication and welcome questions or concerns from our audience. At the end of the day, we want to be transparent and make sure those interested in our work have all the necessary information. Thank you for understanding that our online presence is just one aspect of our larger efforts.
