Credit Scheme, Musoma, Tanzania
Challenge:
The Tarime District, in the the northern part of Tanzania, lies on the eastern shores of Lake Victoria. About 75% of its residents are farmers living below the poverty line of a dollar a day. The remaining 25% engage in small business in the fishing sector, cattle keeping, small enterprises and gardening.
In the most marginalized group, women face much disadvantage, especially in regards to ownership of products of their own work, division of labour and unequal shares. Due to lack of unemployment, youth tend to leave the district and engage in criminal activity and drug addiction. Lack of resources and inability to acquire basic human needs result in high mortality, malnutrition, food insecurity, low literacy levels and low incomes throughout the area. Furthermore, only the Micro-Finance Bank provides loans in the Tarime District, but high interest rates and security loan conditions make access to this credit nearly impossible for poor, small farmers.
Action:
A project of the Uvimake Rural Development Foundation aims to improve the living standard of people in this area through poverty alleviation. Assisted by funds from gorta, the project facilitates access to credit and conducts training and advisory services for low-income and small business operators. The project also offers pre-loan trainings in business management. Continued monitoring lasts through the loan duration of six months to one year.
Benefits:
This project is the continuation of another successful project funded by gorta, which promoted community involvement in income-generating activities and improved living conditions for many families based in the Tarime area. Trainings provided through this project are intended to aid business operators in starting, improving and successfully running their own businesses. Other training also serves to make these operators aware of loan implications. With the achievement of project beneficiaries, the demand for loans increased in the area, leaving the organisation partner unable to face it. With the success achieved, gorta is funding the project again.
