The Importance of Being Owned: Microfinance Institutions in Tanzania

Nongovernmental organisations operating in Tanzania and seeking to transform themselves into regulated microfinance institutions are currently facing the difficult task of establishing who the owners of their organizations are – a crucial factor that is limiting their ability to secure transformation and hence to get access to further funding. As an integral part of the Leverhulme-funded research project “Optimizing the Dual Goals of Microfinance” this briefing paper presents preliminary results of field research undertaken in Tanzania during August 2009. One of the major findings is that gaining access to equity capital is the primary concern of many of these organizations and hence identifying the best strategies to institute shareholding partnerships is paramount.