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Sanitation Microfinance Tanzania

Working Group Meeting

Dar es Salaam15th May 2014

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Centre for Community Initiatives – CCI / Tanzania Urban Poor Fund – Jenga Fund

15th May 2014

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Institutional Background

Most of the urban poor have problems to reach their dreams of having better life, and most of them lives in unplanned settlements/slums, where faced with problems of safe and clean water, poor infrastructure, hygiene and sanitation, poor houses and livelihood problems.

In order for them to face these challenges they need to be well mobilized to form groups which will be empowered and supported, as well as to get micro loans which can help them to overcome their problems

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Institution background ……

Centre for Community Initiative – CCI Is a nonprofit Organization established in 2004 by the Tanzanian

professionals who had a desire of helping poor communities to develop their quality of life through sustainable solution, it has a vision of having and improved quality of life of all Tanzania particularly women living in an planned settlement /Slums

CCI mobilize community to form savings and credits schemes which are on network called Tanzania Federation of the Urban Poor – TFUP

These groups do daily savings and they contribute monthly on their development fund which is recognized as Tanzania Urban Poor Fund – TUPF

Tanzania Urban Poor Fund – TUPF/Jenga Fund To support this initiative, a revolving Fund was established for purpose

of financing different livelihood projects such as: purchases of land, houses improvements, water and sanitation projects and other development projects which initiated by Tanzania Federation of the urban poor,

Structure of TUPFLocal NGO

Other stakeholders/Dono

rs

Jenga Fund – Regional level

Savings and credits schemes

Urban Poor/ slum dwellers

Loans Repaymen

ts

Savings (daily)

• Grants/loans

• Loans• Repayme

nts• Savings• Contributi

ons

Tanzania Urban Poor Fund- TUPF

KEY

Current Savings/Lending Activities & Portfolio

Groups Total of 350 groups have been mobilized in different regions;

Dar-es-salaam, Dodoma, Arusha, Morogoro, Mwanza, Mara, Zanzibar and Tanga

Savings : Current savings within the group is Tshs 165,600,400. Current compulsory savings contributions under regional

federation is Tshs 49,695,200

Loans A total of 1,189 loans for housing construction, water

connection, borehole and toilet construction Since 2009 loans amounting to Tsh 450,690,900($274811)

have been disbursed Current have an outstanding loan Tsh 222,707,250 ($135,797) Current repayment rate is 30%

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WASH Activities (Outside SanFin Project)

Water loans 300 people from unplanned settlement accessed loan for

water connection, TFUP groups accessed loans for 17 water kiosks for selling

water to the community (distribution Point) and 5 boreholes

Toilet Construction loans A total of 980 toilet have been constructed among them

780 provided as a loans while balance was paid on cash. 1 public toilet provided as a loan to one of community

group. 190 Million Tsh ($115,853) worth of loans have been

disbursed since the project started for toilet construction

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In Pictures……

Women constructing toilet

A constructed toilet

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Other WASH Activities (Outside SanFin Project)

PHAST teams; these are groups which formed to educate community on hygiene related issues and solid waste collection

These teams are trained and given equipment for work Housing projects-JENGA Fund providing loans for full house units

and incremental house construction DEWATS (Decentralized Waste Water Treatment Systems)- in

housing projects they are connected to DEWATS Child to child programme- education provided to children about

hygiene and sanitation issues on children clubs which mobilized by CCI

Pit empting by using Gulper technology- This is done by a Federation group trained to use a Gulper

machine. The machine is easy to penetrate to informal settlement

Through SHARE and Water Aid program the project is expected to be scaled up in other settlement of Dar es salaam. Currently there one group

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Pictures ……..One of water projec

t – boreh

ole which use

solar power

DEWATS on

housing

project

Incremental houses

Full house

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Activities under SanFin Project

Training on Market Research- CCI staff was trained by MicroSave on Market research in January 2014

Marketing Research As a result of the training CCI conducted a market research to:

Identify factors limiting the uptake of the loan Establish reasons for low repayment rate Explore additional sanitation loan product that Jenga Fund can offer to the customers Evaluate current delivery mechanism with a view to make more efficient and responsive,

A total of 16 FGDs were conducted in 4 days with 166 respondents Research locations-Karakata, Vingunguti, Chamazi, Kekomachungwa,

Kekomwanga, Tandale and Msasani Bonde la Mpunga. A report on the findings is in final stages and will be shared when ready.

Sanitation Financial Product Concept CCI will work with MicroSave to refine the financial services concepts Some of the proposed concepts include Revision of the current toilet construction loan in terms of

features ,targeted customers and delivery mechanism Gulper Equipment Purchasing Loan Construction of DEWATS Loan Housing improvement

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Challenges Experienced/anticipated

Perception-most of the customers consider loans given under the Jenga Fund as grand or aid-poor repayment

Current disbursement and repayment mechanism has a long process

Due to poor repayment there low amount available in the revolving fund

Dependence on federation committee to remit payment

Low/irregular income in the informal settlement is a threat to loan repayment

Lack of livelihood loans

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Lessons Learnt so far

Importance of matching financial services with customer needs

Possibility of reforming the Jenga Fund in to full fledged MFI

There is a lot of unmet need in sanitation financing informal settlement

How to improve loaning system of Jenga Fund

Importance of developing loan product for Jenga Clients

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Technical Support Requirements

Revision of the current loan process within Jenga Fund

Customer training and re-orientation Capacity building on loan

managements through exchange visit and training of staff

Support to transform Jenga Fund to profit making MFI

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How will TUPF/ Jenga Fund carry on SanFin activities beyond this project?

By revising the current loan product and process Jenga Fund will become more efficient and sustainable

Target additional federation and non federation member to increase uptake and change perception

Include other livelihood loans like business loan to improve income levels in the informal settlement

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End of presentation Thank you Asante sana