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Rural and micro-enterprise financing in Tanzania; Lessons from other developing countries
Satta, T.A / 1999


Abstract:

Micro finance is widely regarded as a tool for poverty alleviation in developing countries and the level of poverty In chose countries makes it even more popular. This article looks at the progress so far made in Tanzania in instituting micro finance activities as a means of alleviating poverty. Evidence shows that little progress has so far been made in financing rural and micro-enterprise activities despite the inception of financial sector reforms in 1991. This little progress could be attributed to, among other things, the failure by the reforms to include comprehensive and complementing policies on rural and micro-enterprise financing. This of course leads to a number of adverse effects on micro finance activities. The article also reviews the micro finance experience of three countries In South America, East Asia and Africa using selected successful micro finance Institutions in those countries and draws some lessons that could be useful in strengthening the progress of micto finance activities in Tanzania.


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