Tanzania Association of Microfinance Institutions (TAMFI), an umbrella body of microfinance providers in the country, is lobbying for enactment of a law that will guide the microfinance sector.
TAMFI said in a press statement in Dar es Salaam over the weekend that it wants a review of the National Microfinance Policy and enactment of Microfinance Act to guide the rapidly growing industry.
At their annual general meeting in Dar es Salaam on Friday, TAMFI members decried the lawless environment in which they operate as most serious challenge that impedes growth.
“Borrowers go through difficulties to get small loans from commercial banks and microfinance institutions are their lone alternative,” said TAMFI Board Chairperson Edmund Mkwawa, adding, “To improve services and get operational interest in microfinance industry, the government should enact the law.”
TAMFI board member Altemius Millinga urged stakeholders to get fully involved in the law enactment process, saying the government had in this year’s national budget indicated willingness to enact the law to guide the sector. Microfinance institutions with membership to TAMFI serve about 1,000,000 customers with a loan portfolio of over 800bn/-.
“We have 65 member institutions with the number of clients approaching 1,000,000, an improvement from last year’s 48 member institutions with 800,000 customers,” said Mr Mkwawa.
He said a drastic increase of the member base was an indication that microfinance institutions were offering good services. TAMFI Executive Secretary Winnie Terry said the association has been strengthening its members’ outreach, focusing attention on policy and regulatory framework of microfinance institutions in the country.
