Tanzania - Rural and Microfinancial Services Project, Vol. 1 of 1

This paper reports the success of a rural and microfinancial services project in Tanzania. The paper:

• States the objectives of the project:
  • To develop a common policy framework, based on internationally recognized best practices for rural and microfinance in Tanzania;
  • To increase the level of knowledge within the industry and institute systematic tracking of all initiatives against common criteria.
• Discusses the achievement of objectives and outputs:
  • The project established an enabling environment by adopting a National Microfinance Policy (NMP);
  • The second objective was met through conferences and workshops that exposed industry participants to international developments and experiences within the country.
• Examines major factors affecting implementation and outcome, like:
  • The commitment of the Government;
  • The inefficiency of the implementation agency;
  • Adequacy of cost coverage;
  • Sustainability of the project.

The paper states that there needs to be:

• Close collaboration between the implementing agency and the other stakeholders in the industry;
• A sustainable enabling environment;
• Maximum use of existing government infrastructure.

It recommends that:

• Project implementation should be mainstreamed into the activities of the implementation agency;
• It is important to build in mechanisms of learning and knowledge generation in project activities;
• There is a need to align donor systems to national systems;
• A special microfinance unit should be established.