Catalyst for financial inclusion
BRAC Tanzania
March 2024
Tanzania, a country on the east coast of Africa, is known for its breathtaking scenery, from the Serengeti savannah to Mount Kilimanjaro. Despite its natural beauty, the country faces socioeconomic challenges. In a nation with a population exceeding 67 million, many people live below the poverty line and lack access to essential financial services. Since 2006, BRAC Tanzania, a microfinance institution in our portfolio, has played a key role in bridging this gap, especially for women and small business owners in remote areas.
Originating from the 1972 vision of parent company BRAC (Bangladesh Rural Advancement Committee), BRAC Tanzania has emerged as a formidable force against poverty. Its microcredit programs do more than provide financial assistance; they equip women with the essential tools to establish their own micro-enterprises. This empowerment is complemented by educational and skills training, further aiding their economic independence. BRAC Tanzania serves more than 310,000 clients, including 303,000 women (98%), underscoring its commitment to female empowerment. Their microfinance products, accounting for 85% of their portfolio, feature an average loan size of USD 300 and terms of up to eight months. In its support for small and medium-sized enterprises (SMEs), BRAC Tanzania assists nearly 7,000 SME clients with larger loans averaging USD 1,500, reflecting the company’s commitment to meeting diverse financial needs.
Rose Marwa Chacha grew up in difficult circumstances, characterized by poverty, forced marriage, and domestic violence. On a neighbour’s advice, she contacted BRAC Tanzania for support, which enabled her to transition from a domestic helper to a successful businesswoman. An initial loan of USD 180 from BRAC allowed her to open a kiosk - a crucial step on the road to financial independence. With a subsequent loan of around USD 3,000, she successfully diversified into trading colourful fabrics for clothing and household items. As the owner of three log cabins, the operator of a cattle farm with 300 animals, and as an employer, Rose has not only improved her family’s living conditions, but also strengthens the community by creating jobs and enriching the local economy.
Today, Rose is a successful businesswoman and a respected member of her community. “In a society where women are often denied participation in economic decisions, I stand as a proud example for other women,” she says. “My family enjoys a better life, and my children receive a good education."
From domestic helper to community leader
From unemployed graduate to entrepreneur
Amasha Mwakalibule was unemployed after graduating from college. This experience led him to embrace entrepreneurship by starting a peanut-selling business. An initial microloan of USD 90 from BRAC enabled him to invest in this venture.
As his business grew, Amasha, alongside his wife, established a household goods shop. Seeking further expansion, he secured a small enterprise loan of USD 650 from BRAC, offering his family’s land as collateral. This loan facilitated the acquisition of a dairy cow and additional investments in the shop, allowing the family to move into their own mud house and scale up their business.
With continuous repayments and additional credit, Amasha increased his loan to USD 3,500, helping him to create jobs and become the owner of five farms, two shops, and two modern homes.
The success stories of Rose Marwa Chacha and Amasha Mwakalibule show how targeted microloans from BRAC Tanzania have been supporting individual growth and community development since 2015. This partnership illustrates the potential of joint efforts to achieve sustainable, measurable change and to promote financial inclusion.
»Our vision of a sustainable world with access to opportunity for all, and our mission to drive positive change through investment in emerging markets, are being realized through our investment in BRAC Tanzania. This partnership is an expression of our commitment to financial inclusion and sustainable growth to build a future where everyone can prosper.»
Aminata Meite, Investment Officer, responsAbility, Nairobi
SDG 1 - No Poverty Increase financial inclusion among the poor, especially those living in rural areas
BRAC Tanzania serves over 170,000 rural clients, including around 2,900 rural SMEs. According to data reported by BRAC Tanzania in 2022, about 70% of its clients live below the poverty line, totalling more than 220,000 clients.
Additionally, about 45% of its total borrower base comes from rural areas in Tanzania where access to credit is limited.
Average loan size
Number of loans disbursed in rural areas
SDG 5 - Geder Equality
Support women’s economic empowerment, providing them with access to credit services
BRAC Tanzania is a female-led business whose client base includes 303,000 women and more than 3,400 SMEs owned or led by women (about 50% of its overall SME client base) in 2023. This support is critical in a country like Tanzania, where almost 45% of female-owned SMEs are fully or partially credit constrained (data source: SME Finance Forum).
BRAC Tanzania reports that women constitute 93% of its total employee base, 57% of its senior managers, and 60% of its board members.
Total female borrowers
Total share of female clients
SDG 8 - Decent Work and Economic Growth
Supporting job creation through small and medium-sized enterprises (SMEs) in the local economy
BRAC disburses more than 7,000 loans annually to SMEs in Tanzania, where more than 40% of SMEs are estimated to be fully or partially credit constrained.
Each year, the company invests over USD 140,000 in training programs, providing education to more than 2,500 employees. This level of investment is quite high compared with most other companies in the portfolio.
Total SME clients
Average loan size to SMEs
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