The role of Microfinance Institutions in Improving the Economic Status of Women in Tanzania: The Case Study of PRIDE TANZANIA (Arusha Branch)

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International Journal of Scientific and Research Publications, Volume 4, Issue 11, November 2014
1
ISSN 2250-3153
The role of Microfinance Institutions in Improving the
Economic Status of Women in Tanzania:
The Case Study of PRIDE TANZANIA (Arusha Branch)
Tiberius P. Mlowosa*, Natalia Kalimang'asi**, and Bundala Dodo Mathias**
*Mwalimu Nyerere Institute of Management and Administration (MNIMA) - Dar es Salaam- Tanzania
**Local Government Training Institute (LGTI) - Dodoma -Tanzania
Abstract- The roles of Micro finance institution is to provide
technology and gender bias, division of labour, diseases, large
small
loans
to
their
clients,
creation
of
employment
household size,
unequal exchange in international trade,
opportunities, capacity building to borrowers by offering
problems of refugees, debts burden, dependence on foreign aids,
different skills such as use of loans, entrepreneurship and
poor policies and introduction of new policies. World bank
managerial skills. The research intended to examine the role
(2000) argued that dependence on natural rain water causes poor
played by financial institution's operations in improving the
harvest, which result in food and income shortages which would
economic status of women in Tanzania through provision of soft
in turn have helped them to afford other social services such as
loans, by taking PRIDE TANZANIA-Arusha as a case of study
education, housing and health services.
basing on the fact that women are the poorest amongst the
Microfinance is a system that allows people in poor
world's poor people.
countries to borrow small amount of money to help them start a
Both primary and secondary data were collected. Primary
small business. It is the provision of financial services to those
data was collected by questionnaires, interviews and observation
who are excluded from conventional commercial financial
for 100 women respondents whereby Secondary data were
services since most are too poor to offer much - or anything - in
obtained from books, journals, research reports, news papers,
the way of collateral. Poor people have few assets that can be
dissertation and Inter-net website. Responses from interviewees
secured by a bank as collateral
were coded and analyzed by using Statistical Package for Social
Traditionally women are undermined, they are not given
Science (SPSS) tool. Results from the analysis showed that
chance to own means of production such as land and other assets.
majority of loan beneficiaries(83.0%) use loans for invest in
Microfinance institutions (MFI) are organizations that provide
business and 65.0% of respondents use the profits generated from
microfinance
services,
ranging
from
small
non-profit
Pride Tanzania to meet family needs. This implies that most
organizations to large commercial banks. The nature of
PRIDE TANZANIA loan beneficiaries invest their loan received
commercial banks is that interest rates need to be high to return
in business Nearly three quarter of respondents (68.0%) said that
the cost of the loan. Most commercial banks provide loans on
they have managed to improve their standard of living after
collateral basis. Poor people can not get those loans since they
receiving PRIDE TANZANIA loans and the rest said that they
have few assets to be secured by banks which would have helped
have experienced an increase in consumption. Findings from this
them to engage in economic activities as a means of poverty
study proved that microfinance (PRIDE TANZANIA) operations
alleviation.
works among the poor people. Furthermore, findings evidenced
Microfinance both credit and savings has potential in
that women economic status in the community changed from
improving the well being of the poor in developing countries.
living in difficulties to a better life. The researchers recommends
Currently the availability of suitable Microfinance institutions
to the policy formulating organs to institute appropriate
(MFIs) in Tanzania, which are capable of serving households,
interventions that will enable easy accessibility of provision of
small farmers, small and micro enterprises in rural as well as in
small soft loans to make poor rural people get out of poverty.
urban area, is limited. For the vast majority of Tanzanians whose
incomes are low, access to financial services would offer the
Index
Terms-
Microfinance
institutions,
Loans,
Women
possibility in
managing scarce
household
and
enterprise
economic Empowerment
resources more efficiently, protect against risks, provision for the
future, and taking advantages for investment opportunities for
economic returns and hence poverty reduction.
This is only
I.
INTRODUCTION
possible through establishment of well designed and sustainable
microfinance activities in the country. PRIDE TANZANIA is
anzania
got
its
independence
in
1961.
Soon
after
Tindependence Tanzania declared war against three one of the microfinance institution involved in the provision of
development enemies namely ignorance, diseases and poverty,
credit to the low income earners in Tanzania.
but there were no specific action against poverty. In Tanzania
It is from this context that the study wanted to know to what
extent micro finance institutions operations in Tanzania through
poverty
is
caused
by
many
factors
such
as
drought,
unemployment, underemployment, low level of production, poor
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loans provision improve the economic status of women by taking
women in Tanzania will increase women capabilities and their
PRIDE TANZANIA - Arusha branch as a case of study.
abilities towards gender balance.
It is from these facts that the president of United Republic
The Concept of Micro Finance
of Tanzania His excellence Jakaya Mrisho Kikwete in 2006 came
Microfinance both credit and savings has potential to
up with the idea of providing soft loans to the lower capital
improve the well being of the poor in developing countries.
business groups across Tanzania by assigning 20 billions and I
Micro financing is a provision of small loans to small
billion to Tanzania mainland and Zanzibar respectively. The
entrepreneur who lack the credentials and collateral demanded by
loans extremely known as JK billions was aimed at empowering
banks. These small loans are normally provided by microfinance
SMEs grow bigger to both Tanzanians to increase their levels of
institutions (MFIs). They provide financial service which
income and enable them participate effectively in building the
include; saving, credit and insurance.
Apart from financial
national economy.
services some MFIs provides social services such as group
formation
and
training
on
investment
skills
and
group
Limitations of Micro Finance Institutions in Relation to
management (Salay, 2006).
Women empowerment
MFIs mostly SACCOS are more supportive and friendly to
Most Micro finance Institutions provide soft loans on
poor ordinary people who are ignored by the sophisticated
collateral bases. Women are deprived from owning means of
financial services systems (Banks). These institutions work hand
production such that they cannot easily access these loans. Social
in hand with the Government in extending small loans to poor
attitudes to women are responsible for gender differences in both
people to avoid risks/loss of their funds. The groups use the loans
system of labor, training and education. There is a discrimination
in establishing micro business or enriching the already owned
against woman and the judicial system does not provide adequate
micro business.
protection for women and children, inadequate capacity of the
Having explained the background information of the
public law enforcement Institutions, low awareness of civil
operations of MFIs it is now appropriate to define the term
rights, ambiguity of law and limited options for redress (WB
microfinance.
Different
scholars
have
defined
the
term
1988).
microfinance differently depending on contingent
factors.
In addition, most poor people have few assets that can be
Microfinance is defined by Longman dictionary of contemporary
secured by a bank as collateral. As documented extensively by
English (2003) as a system that allows people in poor countries
Hernando de Soto and others, even if they happen to own land in
to borrow small amount of money to help them start a small
the developing world, they may not have effective title to it. This
business.
Microfinance
has
also
been
defined
by
means that the bank will have little recourse against defaulting
www.Wikipedia.org as the provision of financial services to low-
borrowers. Although much progress has been made, the problem
income
earners.
And
PRIDE
TANZANIA
has
defined
has not been solved yet, and the overwhelming majority of
microfinance as Microfinance that involves activities directed at
people who earn less than $1 a day, especially in the rural areas,
provision of access to financial services for the lower income
continue to have no practical access to formal sector finance.
earners or small and micro-enterprises. In this study the
Women experience the highest degree of deprivation from
definition given by PRIDE TANZANIA is used.
means of production that results to them having low economical
status in the community. If we compare the lives of the
The role of MFIs on Women in Developing Countries-
inhabitants of poorest communities across the world especially
Tanzania model
third world countries, women are the poorest followed by
The roles of Micro finance institution is to provide small
children. This has been evidenced by women facing cases like
loans to the low income earners, creation of employment
malnutrition, AIDS, less access to primary health care, clean
opportunities , capacity building to borrowers by offering
water, education, less government seats and informal productive
different skills such as use of loans, entrepreneurship and
activities followed by having low capital and poor technology
managerial skills. Poverty alleviation is a global issue which lies
which are hidden by ignorance, illiteracy and their potentiality in
on the concept of upgrading the position of developing countries
the society (NSGRP, 2002).
in the world, focusing to Tanzania. Women need access to MFIs
ATRCW (1986), hooding (1987), lack heed and Garman
so that they can further raise their income.
(1987), Byrne (1988), Ankara Hein (1995) and light -Doyle
The world's poorest, especially women, improve their lives
(1991) both explain some factors that limit woman perception in
and escape poverty through access to microfinance and
equity with male to be prejudices about woman abilities and
technology. Global poverty is a daunting challenge. But by
attitudes, their roles, their behavior and aspirations, culture,
making very small soft loans using available MFIs to very
political
and
society,
absence
of
role
models,
parental
determined people, millions of the poor rural Tanzanians will
expectations, beliefs, cultural, tradition, teachers altitude and
pull themselves out of poverty (Hon. Eng. Mnyaa (MP) during18
behavior, career guidance, employer altitude, lack of education
Parliamentary session, seat No. 11 on 08 February, 2010).
and training, families, lack of quotes, lack of exposure to
According to World Bank report (1989), most African
technically oriented subjects, group pressure at home and
at
women in common face a variety of legal, economic and social
school, interactions between girls and boys, lack of school books
constraints involving in global activities. Most Tanzanian woman
and resources, materials and lack of
confidence to try new
has always being active in agriculture, trade, and informal sector
things. This list requires to be defined to find out exactly which
and in low paid jobs. Changing economic and social situation of
factors are the most and which are the least in relation to how
women suffer legal, economic and social constraints.
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International Journal of Scientific and Research Publications, Volume 4, Issue 11, November 2014
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financial sector... Together, we can and must build inclusive
financial sectors that help people improve their lives". All in all
the main issue here is setting enabling environment for the
provision of micro financial services that will enhance the poor
get rid of poverty.
Overview of conceptual framework
The conceptual framework of this study is based on the
assumption that women seeking soft loans from PRIDE
TANZANIA are a result of being in a state of poverty,
unemployment and low income earners. Hence it is expected that
most women would heavily rely on other variables like loan
conditions, motives for acquiring loans, impact of loan interest
rate and attitudes towards women economic empowerment so as
Mr. Kofi Annan, former UN Secretary General (in the
to inculcate the state of poverty to a better life among Tanzanian
above picture) addressed the need for financial services by the
women.
poor as: "The great challenge before us is to address the
constraints that exclude people from full participation in the
Loan conditions
Impact of loan interest

- Lower income
people who are
Future plan is required
deprived from owning

Group business is
the means of
essential
production

Growth aspiration

Build credit

Hard working spirit
worthiness of the poor

Clients have to
graduate from lower
to higher loan cycles

Establishment of small
business takings
PRIDE
Conept
Women economic empowerment
ual
TANZA
Majority of women use
acquired loans in business as
Frame
NIA
a means to alleviate poverty.
work
Manage family needs
Motives for acquiring Loans


Self employment
Majority starts business as
Better life
a result of availability of
small amounts of soft loans

Low interest rates

Easy accessibility of the
loans

Easy loan processes
Figure 1: Conceptual framework of the study
Source: Researcher's own Construct 2010
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TANZANIA are females, this is due to the fact that most women
II. METHODOLOGY
are poor, unemployed and have low incomes.
Sample size and area of the study
The study was conducted at PRIDE TANZANIA in Arusha
Table 2 below provides a summary of Sex of Pride Tanzania
branch because the topic is relevant to the selected organization
Customers
and is where the researchers have the access to conduct the study.
Also the financial constraints have influenced researchers to
Sex of the customer
Frequency
Percent
choose Arusha region so that data collection process is less cost
Female
88
88.0
full. The population sample comprised of 100 respondents who
Male
12
12.0
participate in taking soft loans from PRIDE TANZANIA in
Total
100
100.0
Arusha branch. The sample was proposed to be used because was
Source: Field survey 2010
feasible and practical to obtain information required from
different clients of PRIDE TANZANIA in Arusha Region.
Marital Status
The analysis in Table 3 indicates that out of a total of 100
Methods of data collection and analysis
respondents, 51(51.0%) respondents were widows, 23(23.0%)
Both primary and secondary data were used by researchers
were divorced, 15(15.0%) were single and 11(11.0%) were
to investigate the problem. Primary data was collected from
married.
questionnaires, interviews and observation whereby Secondary
The findings below indicate clearly that the majority of
data were obtained from different sources including books,
women seeking loans from Pride Tanzania are widows. This is
journals, research reports, news papers, dissertation stations and
because widows have to take the responsibilities of caring for the
Inter-net website. Responses from respondents were coded and
family, sending their children to school, ensuring that there is
analyzed by using statistical tool of data analysis (SPSS). Results
enough food for the family, health care since they have no
of the analysis were presented descriptively in a tabular form
husbands to assist them.
followed by narrative description of the results.
Table 3 below provides a summary of marital status of Pride
Tanzania Customers
III. RESULTS
Marital Status
Frequency
Percent
Level of education
Table 1 below analyses respondents' level of education.
Single
15
15.0
Results shows that 73.0% of respondents (women getting loans
Married
11
23.0
from
PRIDE
TANZANIA)
are
primary
school
leavers,
Divorced
23
11.0
27(27.0%) of them are secondary school leavers and none of
Widow
51
51.0
them are graduates of higher learning educations.
Total
100
100.0
Source: Field survey 2010
Table 1: Below provides a summary of loan recipients' level
of education
Employment
Table 4 shows that out of a total of 100 respondents, 29
Level of education
Frequency
Percent
(29.0%) respondents among women getting loans from PRIDE
Primary education
73
73.0
TANZANIA are formally employed and 71(71.0%) of them are
Secondary education
27
27.0
self employed. This means the majority of women seeking loans
Higher
learning
0
0
from PRIDE TANZANIA are self employed.
education
Not applicable
0
0
Table 4 below provides a summary of employment status of
Total
100
100.0
Pride Tanzania Customers
Source: Field survey 2010
Occupation
Frequency
Percent
From the basis of the above analysis it is clear that the
Yes
29
29.0
majority of women seeking loans from PRIDE TANZANIA are
No
71
71.0
primary school leavers who don't have other income apart from
Total
100
100.0
the loans provided by Pride Tanzania and poor basic business
Source: Field survey 2010
skills.
Residence
Sex of respondents
From the analysis below we find
that outl of 100
Table 2 shows that out of a total of 100 respondents
respondents, 14(14.0%) respondents among women getting loans
88(88.0%) respondents among loan applicants from PRIDE
from PRIDE TANZANIA live in their own houses and
TANZANIA are females and 12(12.0%) were males. This
86(86.0%) of them live in rented houses. It can be concluded in
implies that most respondents seeking loans from PRIDE
this part that the majority of women seeking loans from PRIDE
TANZANIA live in rented houses. It was learnt from the
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International Journal of Scientific and Research Publications, Volume 4, Issue 11, November 2014
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findings that 97% of respondents were widows who are living in
finding is in line with Anand (2005) who found in his study that
rented houses after the death of their husbands and 13% are
the role of Self Support Help Groups (SHG) in empowering poor
single. It was further found that all 100(100%) respondents live
women in Kerala, India have great potential in alleviating
within Arusha Municipality. This indicates women from rural
poverty and empowering women, provided partisan, politics and
areas have no access to PRIDE TANZANIA loans.
vested interests are kept at bay. Also he found that provision of
credit alone may not produce the desired impact, support services
Table 5 below provides a summary to show the Residential
and structures through which credit is delivered ranging from
status of Pride Tanzania Customers
group information and training to awareness raising and wide
range of other supporting measures are critical
to making
Own house or rented
Frequency
Percent
measures felt.
Own house
14
14.0
Rented house
86
86.0
The motives behind for women to acquire loans
Total
100
100.0
The analysis below proves that out of 100 respondents,
Source: Field survey 2010
70(70.0%) of them said that the got the information from their
relatives, 17(17.0%) get information from Pride Customers and
13(13.0%) respondents among women getting loans from Pride
Motives for opting Pride Tanzania loans:
Tanzania said that they got information about the loans from
Table 6 shows that out of 100 respondents, 73(73.0%) of
their neighbors. The findings suggest that most of women
them said that the loans are easily accessible while 27(27.0%) of
the respondents said that they opted PRIDE TANZANIA loans
seeking loans from Pride Tanzania got information about the
because of low interest rate. It is evidenced from the table 6
loans from their relatives
below that many women seek loans from Pride Tanzania because
they are easily accessible. It was further learnt that some women
Table 8 below provides a summary to show where they got
seek loans from Pride Tanzania because the loan conditions are
information about Pride Tanzania loans
fair.
Source
of
information
Frequency
Percent
about Pride loans?
Table 6 below provides a summary to show why they have
decided to take Pride Tanzania loans:
My neighbor
13
13.0
My relative
70
70.0
Reasons
for
opting
Frequency
Percent
Mass media
0
00.0
Pride Tanzania loans
Pride customers
17
17.0
Total
Low interest rate
27
27.0
100
100.0
Easy to access the loans
73
73.0
Source: Field survey 2010
Total
100
100.0
Source: Field survey 2010
Period when started receiving Pride Tanzania loans
From the table 9 below we can argue that out of a total of
100 respondents, 72(72.0%) respondents among women who are
Procedure for processing loans
getting loans from Pride Tanzania said that they started taking
Table 7 shows that out of a total of 100 respondents
the loans before 2006 and 18(18.0%) of them said that they
93(93.0%) respondents among women getting loans from Pride
Tanzania said that it is not difficult to process Pride loans while
started taking the loans from 2007 to date. Therefore it is
7(7%) said it is very difficult to process PRIDE TANZANIA
observed from the above table that the majority of women started
loans. The above table reveals that a big number of women seek
taking Pride Tanzania loans before 2006.This also reveals that
these PRIDE TANZANIA clients are benefiting from the loans
loans from Pride Tanzania because it is easy to process the loans
and it doesn't' take long time .
given and are satisfied by the service given by the institution that
is why they continue taking loans.
Table 7 below provides a summary to examine the procedure
of processing Pride Tanzania loans:
Table 9 below provides a summary to show the time when
they started receiving Pride Tanzania loans:
Procedures
for
Frequency
Percent
Period
when
started
Frequency
Percent
processing Pride loans
taking Pride loans
Not difficult
93
93.0
Before 2006
72
72.0
Very difficult
7
7.0
From 2007 to date
18
18.0
Total
100
100.0
From 2008 to date
0
00.0
Source: Field survey 2010
From 2009 to date
0
00.0
Total
100
100.0
However, it was observed from the study that provision of
Source: Field survey 2010
loans is through enterprise groups of five (5) members.
Enterprise groups meet once every week. If a loan applicant is
not from any enterprise group is not qualifying to get loan. This
Loan amounts received from Pride Tanzania
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Table 10 shows that out of a total of 100 respondents all
Meet family needs
65
65.0
85(85.0%) respondents among women getting loans from Pride
Spend in social life
0
00.0
Tanzania said that they are getting the loans above 300,000 and
Others
0
00.0
15(15.0%) between Shs. 200,000 and 300,000. This implies that
Total
100
100.0
the majority of women seeking loans from Pride Tanzania
Source: Field survey 2010
receive the loan amounts above Shs. 300,000.
Changes experienced in life style after receiving
Pride
Table 10 below provides a summary of loan amount received
Tanzania Loans
from Pride Tanzania:
Table 13 shows that, 68(68.0%) respondents said that they
have managed to improve their standard of living after receiving
Loan amount received
Frequency
Percent
Pride loans and 32(32.0%) of the respondents said that they have
Below Sh. 100,000
0
00.0
experienced an increase in consumption as evidenced in the
Between Shs. 100,000
0
00.0
below analysis.
and 200,000
Between Shs. 100,000
0
00.0
Table 13 below provides a summary on the changes in life
and 200,000
style after receiving Pride loans:
Between Shs. 200,000
15
15.0
and 300,000
Changes experienced in
Frequency
Percent
Above Shs. 300, 000
85
85.0
life style after receiving
Total
100
100.0
loans
Source: Field survey 2010
Manage to improve the
68
68.0
standard of life
Uses of Loans Received
Increase the number of
0
00.0
Table 11 shows that out of a total of 100 respondents,
family members
83(83.0%) respondents said they invest in business, 13(13.0) said
Increase in consumption
32
32.0
they use part of the loan in meeting family needs and 4(4.0%)
Total
100
100
said they used to spend the loan received in social life From the
Source: Field survey 2010
analysis below it implies that most PRIDE TANZANIA loan
beneficiaries invest the loan received in business.
Ms. Rozi Mushi aka Manka, a resident of Sakina area in
Arusha Municipality had the following while responding to our
Table 11 below provides a summary on the uses of loans they
interview with her: "I used to live with my friends in a ghetto
receive from Pride Tanzania:
with lots of life difficulties as I had no place to shelter myself, no
close relative to assist me and always uncertain of what to eat in
Uses of loans received
Frequency
Percent
a day. My relative informed me about Pride loans, we decided to
Invest in business
83
83.0
form a group of five people and went for the loan. After joining
Increase the number of
0
00.0
Pride Tanzania loan scheme I real feel very proud, things
family members
changed very quickly. I can now buy food for myself; I have
partly meet family needs
13
13.0
rented two rooms within Arusha Municipality and I managed to
Spend in social life
4
4.0
buy enough furniture to support my life. Thanks God"!
Total
100
100.0
Source: Field survey 2010
Assisting their husbands in meeting home need
Table 14 shows that out of a total of 100 respondents,
Use of profits generated from Pride Tanzania loans
87(87.0%) respondents among women getting loans from PRIDE
Table 12 shows that out of a total of 100 respondents,
TANZANIA said that they used to assist their husbands to meet
65(65.0%) respondents among women getting loans from Pride
home needs and 13(13.0%) of them said that they don't assist
Tanzania said that they used to meet family needs and 35(35.0%)
their husbands in meeting home needs.
of them said that they used to reinvest in business. On the basis
of the above analysis the majority of loan beneficiaries use the
Table 14 below provides a summary on how women assist
profits generated from Pride Tanzania to meet family needs.
their husbands in meeting home needs:
Table 12 below provides a summary on use of profits
Assisting their husbands
Frequency
Percent
generated from Pride Tanzania loans:
in home needs
Yes
87
87.0
Use of profits generated
Frequency
Percent
No
13
13.0
from the loans
Total
100
100.0
Reinvest in my business
35
35.0
Source: Field survey 2010
Increase the number of
0
00.0
family members
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It is clear from the above analysis that the majority of
Total
100
100.0
women taking loans from Pride Tanzania used to assist their
Source: Field survey 2010
husbands in meeting home needs. This was further evidenced by
Mama Laizer, a primary school teacher within the Arusha
Affordability of loan repayment in time
Municipality at Sanawari area, who responded as follows during
Table 17 shows that out of a total of 100 respondents,
the interviews: "We used to depend on our little salaries with my
90(90.0%) respondents among women getting loans from Pride
husband to support our life and sent to school our 10 children in
Tanzania agreed that they manage to make loan repayment in
our family. Life was very biting and difficult as we could not
time and 10(10.0%) said they don't manage to repay the loan in
manage to send all of our children to schools in time. Sometimes
time. The analysis shows that most loan beneficiaries of Pride
we ended up drinking porridge in a day. We put on used clothes.
Tanzania manage to make loan repayment in time. However, it
That was our normal life. Life changed after joining Pride
was observed from the study that provision of loans is through
Tanzania loan scheme. You can not believe it. We now have our
enterprise groups of five (5) members. Enterprise groups meet
own house, we are able to pay for school fees for our children in
once every week. The findings revealed that when an enterprise
time and we are able to buy food for all of us. She considers the
group member fails to make loan repayment in time, the rest in
move as God's miracles"!
the enterprise group are required to find her otherwise the
defaulter's properties will be seized for auction to recover the
Difficulties faced by women in running their business
loan taken. In case an enterprise group member is not found the
Table 15 shows that out of a total of 100 respondents,
rest will carry the burden of paying the defaulters loan.
55(55.0%) respondents among women getting loans from Pride
Tanzania said that they don't face any difficulties in running their
Table 17 below provides a summary on affordability of Pride
business and 45(45.0%) said that they face some difficulties in
Tanzania loans repayment in time:
running their business. Basing on below analysis it is revealed
that most loan beneficiaries of PRIDE TANZANIA face no
Affordability
of
loan
Frequency
Percent
difficulties in running their business.
repayment in time
Yes
90
90.0
Table 15 below provides a summary on the difficulties
No
10
10.0
women face in running their business:
Total
100
100.0
Source: Field survey July , 2010
Difficulties
faced
in
Frequency
Percent
running business
No
55
55.0
IV.
C
Yes
ONCLUSION
45
45.0
Total
100
100.0
The study findings conclude that majority of PRIDE
Source: Field survey 2010
TANZANIA loans beneficiaries are primary school leavers and
married unemployed women who live in rented houses within the
However, it was observed from the findings that 75% out of
urban areas of Arusha Municipality. It is also leant that the Loan
those respondents who used to face difficulties in running their
conditions provided by PRIDE TANZANIA are fair, easily
business due to lack of market for their products and the
accessible, and easy to process them. The study also found that
remaining 25% joined recently with Pride loan scheme. They
the motives behind for women to acquire loans from PRIDE
said that they face difficulties simply because they don't have
TANZANIA are to invest in business undertakings. The majority
specific area far selling their products. Sometimes they are
of them started taking loans before 2006 to date and they have
chased by the council soldiers.
been receiving the loan beyond Tshs. 300,000. Furthermore, this
study evident that women involved in taking loans from PRIDE
Affordability of loan interest
TANZANIA, their economic status in the community changed
It is evidenced from table 16 that out of 100 respondents,
from living in difficulties to a better life because most of them
84(84.0%) respondents among women getting loans from Pride
have managed to meet their daily needs. Moreover, result
Tanzania said that Pride loans interest rate is affordable and
revealed that PRIDE TANZANIA loan interest and repayment
16(16.0%) said the loan interest is not affordable. The analysis
procedure are affordable and beneficiaries can manage to repay
below converses that the PRIDE TANZANIA interest rates are
the loan in time. This make them run their business with little
affordable.
difficulties. However, it is observed from the study that provision
of loans is through enterprise groups of five (5) and when an
Table 16 below provides a summary on affordability of Pride
enterprise group member fails to make loan repayment in time,
Tanzania loans interest:
the rest in the enterprise group are required to find her otherwise
the defaulter's properties will be seized for auction to recover the
Affordability
of
loan
Frequency
Percent
loan taken. In case an enterprise group member is not found the
rest will carry the burden of paying the defaulter's loan.
interest
Yes
84
84.0
No
16
16.0
www.ijsrp.org

International Journal of Scientific and Research Publications, Volume 4, Issue 11, November 2014
8
ISSN 2250-3153
V.
RECOMMENDATIONS
[11] UN (2006): United Nation Women Framework.
[12] UNESCO (1991): Report on International investigation in education.
(i)
The
study
recommends
to
PRIDE
TANZANIA
[13] URT (2002): Poverty and human development report, National printing Co.
extended more small soft loans to as many women as
Dar es salaam, Tanzania.
possible, to enable millions of poor Tanzanian's women
[14] URT (2001): Country report progress; millennium declaration development
pull themselves out of poverty.
goal.
(ii)
This study has revealed that Pride Tanzania is a
[15] URT (2002): Tanzania assistance strategy framework (TAS).
microfinance institution which is engaged in the
[16] URT (2003): Small and Medium Enterprises Development Policy, Ministry
provision of small soft loans to the poor people get out
of Trade and Industry, Dar es Salaam.
of poverty in urban areas leaving the rural areas
[17] United Republic of Tanzania (URT) (1996) (2004a). "National Strategy for
Growth and Reduction of Poverty (NSGRP)". Vice
unsaved. It is recommended here that it is high time for
-Presented Office's, Dar
es Salaam
PRIDE TANZANIA extend its service to rural areas
[18] United Republic of Tanzania (URT)
(1996).. Sustainable Industrial
where the majority of poor communities are living.
Development Policy (1996-2020)
(iii)
It is further recommended that the Government should
[19] Ministry of Industries Trade and Marketing (MITM), Dar es Salaam
make attracting environments to investors in micro
[20] Workshop Report (2003): financing micro finance in east Africa.
finance who wish to make such investments in the rural
[21] WB (1993): Review of bank lending, agricultural, credit and rural finance
areas where the poor peasants are living to enable them
[22] WB (2002): Report on women status in Africa.
defeat poverty through Rural Micro Finance Operations.
[23] www.Wikipedia.org
[24] www.Micro Loan Foundation.org
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[1]
Lipsey, R. G. and Harbury, C (1992): first principal of economics.
AUTHORS
[2]
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(university of dare s salaam).
First Author: Tiberius Mlowosa: Masters of Science in Finance,
[3]
Nchimbi, M (2niversity of Dar es Salaam.
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[email protected]
[4]
Nchimbi, M (1999) "Ent000): "A Comparison of Male and Female
Personal Characteristics start up Motives and perception of success". Un
Second Author: Natalia Kalimangasi - Master of Business
published PhD. Thesis U repreneurial motives to start MSEs and their
Administration (Finance), Bachelor of Science in Agricultural
Perception of business success". Are the gender differences? Business
Economics and Agribusiness, Email: [email protected]
management Review Vol. 6.
Third Author: Bundala Dodo Mathias - Master of Business
[5]
ILO, vide International Labour Organization. 2002. Jobs. Gender and
Small enterprises in Africa, Preliminary report; Women entrepreneurs in
Administration (Agribusiness), Bachelor of Education
Tanzania.
(Mathematics), Email: [email protected]
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Olomi 1999, African Entrepreneurship and Small Business Development,
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Correspondence Author: Tiberius Mlowosa - Email:
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[email protected] +255 767 284 988
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www.ijsrp.org