Use and Impact of Savings Among the Poor in Tanzania

The purpose of this report is to share findings and improve knowledge and understanding of (if and) how poor people save in Tanzania, how they use different savings mechanisms and what the impact of these savings facilities is on their household budgets and lives.

The report:

• Pays particular attention to savings services used and those not used by poor people;
• Examines the perceived advantages and disadvantages of a variety of savings services;
• Explores how savings services are used to manage household income/expenditure flows;
• Explores why some people save in-kind and how financial services might induce them to begin monetised savings.

Draws lessons for MFIs seeking to develop poor-responsive savings services, suggesting the incorporation of features such as:

• Close services to customers;
• Flexible and unlimited withdrawals, with the ability to withdraw all over the country;
• Disciplined employees that should be able to tirelessly give customers education on the services available;
• Caring for customers and be understanding when they have problems;
• Simple clear instructions for customers and no service charges on customers' accounts;
• A sound capital base to avoid closures.