TAMFI calls for action over high lending costs
DAR ES SALAAM: THE Tanzania Association of Microfinance Institutions (TAMFI) has urged for a reduction in high lending costs to promote financial inclusion and sustainability within the microfinance sector.
TAMFI Chairperson, Ms Devotha Minzi stressed the importance of addressing such challenges to improve service delivery and enhance the public perception of the microfinance sector.
“While our sector plays a key role in promoting financial inclusion, we must also address the complaints and concerns of our clients to provide efficient services and build a positive reputation,” Ms Minzi stated recently at an advocacy meeting held in Dar es Salaam.
Other challenges that need to be tackled are namely adherence to responsible lending practices and effective loan recovery methods.
She emphasised the importance of recognising the vital role played by microfinance institutions, particularly TAMFI members, in providing loans to those underserved by larger financial institutions.
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“Our primary goal is to ensure that the microfinance services we provide reach individuals who are unable to access credit from commercial banks,” Minzi said.
She highlighted the increasing demand for microfinance services in the country, noting that the growth in loans provided by TAMFI members reflects this need.
The meeting brought together stakeholders from across the microfinance sector to discuss ways to improve financial inclusion and address the challenges facing the industry. The meeting aimed to evaluate the contributions of microfinance institutions to the nation’s economy and to explore strategies for enhancing the efficiency of the microfinance sector in Tanzania.
A significant part of the meeting included the presentation of TAMFI’s Code of Conduct, which outlines best practices for transparency in loan costs, confidentiality of client information and effective dispute resolution.
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The meeting also underscored the need for all microfinance institutions to comply with the guidelines set by the Bank of Tanzania (BoT) to maintain transparency and accountability across the sector.
TAMFI CEO, Ms Winnie Terry, emphasised the potential of the microfinance sector to drive economic growth.
“Microfinance institutions are crucial for the nation’s development as they provide essential financial services to many people who cannot easily access conventional banking services. We must work together to overcome the challenges facing the sector and ensure that our services continue to benefit communities,” Ms Terry said.
