The mission of PRIDE-Tanzania is to create a sustainable financial and information services network in order to stimulate their business growth, enhance their income and create employment in Tanzania. The main objectives of PRIDE Tanzania are focused on the provision of access to financial services to micro enterprises and low-income households in Tanzania.
As a microfinance institution PRIDE Tanzania provides these services:
MEC Loan -This product is based on a modified Grameen model.
-To be eligible, a client must join a self-selected solidarity group guarantee of 5 members called an Enterprise Group
-10 Solidarity groups combined into one large group of 50 called a market enterprise group (MEC), for ease administration and enhancement of group mechanism.
- Compulsory weekly savings as part of loan insurance scheme and refundable upon exit.
- Involvement of the client in the administration of the program through elected leadership for weekly meetings.
-Half yearly bonus payout on compulsory savings.
Fahari Loan Product
- Solidarity groups of three to five self selected from among MEC loan clients.
- Near collateral items pledged as additional guarantee to reinforce security supported by formal legal agreement.
- Half yearly bonus payout on compulsory savings
Ajira Loan Product
- The product is targeting employees in the government and other reputable organizations.
- Employers must guarantee their employees.
Wholesale Lending- PRIDE Tanzania has entered into a strategic alliance with IFAD sponsored Rural Financial Services Programme based in Mbeya to provide access to financial services for the rural areas. The modality for collaboration with RFSP involves the provision of loans to rural based microfinance institutions such as SACCOS and SACAS, which in turn lend the funds to their members.
- The product is targeting registered SACCOS
- Board members guarantee the loan.
- Loan sizes range from $8,500 - $42,500 USD.
-Competitive interest rate.
-Flexible loan term between 6 - 12 months.
PRIDE targets economically active individuals owning and running businesses worth under US $700. It has over 89,700 active borrowers of which 65% are women.
Independent impact assessment studies involving sampled borrowers indicate many improvements with respect to the businesses and living standards of a significant proportion of borrowers:
- Registered business growth both in terms of increased volume of existing businesses and/or creation of new businesses.
- Borrowers have experienced a significant increase in income.
- There has been more employment generated, mostly involving close relatives.
- Improved family living standards – they can now afford decent meals and medical treatment, pay for school fees and school uniforms for children, and afford better homes contrary to their situation before accessing the loans.
- The women of Tanzania are much more confident in themselves and their abilities through enhanced income and hence purchasing power.
- More women are becoming equal partners in the homes and participate fully in the planning of family welfare.
Amar Said Slim was able to obtain loans from PRIDE Tanzania to ensure payment of school fees for his children and raise his family's standard of living. He has future plans to use more PRIDE soft loans and recommends other potential clients to seek help from PRIDE. Full Story