This week we have two new providers joining MYC4’s network of partner MFIs: Mtaji Credit Facility Ltd and Fanikiwa Microfinance Company Ltd. Both new providers are from Tanzania, based in the capital Dar es Salaam.
Mtaji Credit Facility Ltd
Mtaji Credit Facility (MCF) launched its operations in 2009 with the mission of providing financial services such as loans and capacity building to micro entrepreneurs in Tanzania. The main motivation for the establishment of the company was the belief that Tanzanians have the capacity to employ themselves through working hard, and an interest in helping the community to raise the standard of living through training and financial support. MCF’s mission is “to serve the Small and Micro-enterprise (SMEs) sector through intermediation for the underprivileged and active poor in accessing financial services and income generation in the society”.
MCF is a relatively small microfinance institution with 1 branch, 14 staff and approximately 1,500 clients. It is financially sustainable and operates with a low-cost model that ensures high operational efficiency. Mtaji’s average loan size is €234 and 90% of its clients are women. On the MYC4 platform, Mtaji will start with both individual and group loans in the range of €400-5,000 with an average payback period of 9 months. It is expected that Mtaji will slowly build its loan portfolio on MYC4 up to a maximum of €100,000 in outstanding loan balance (OLB) by the end of the 6-month pilot.
Fanikiwa Microfinance Company Ltd
Fanikiwa Microfinance Company Ltd (FMFC) has been in operation since 2010 when Tanzania Gatsby Trust (TGT) decided to create a separate and professionally run company to specialise in the provision of financial services to micro entrepreneurs. The transformation process is supported by UK-based Gatsby Charitable Foundation which has also been instrumental in the development of Gatsby Microfinance Limited in Uganda (MYC4 provider since 2008). The mission of Fanikiwa is “to provide quality and inclusive financial services to micro, small and medium enterprises, both individuals and communities, focusing on underserved segments/groups in the quest to increase their household income”.
Fanikiwa has 5 branches located in Dar es Salaam, Zanzibar, Mwanza, Korogwe, and Arusha, a total of 43 staff, and around 1,500 clients. During the pilot on MYC4, it is expected that the majority of FMFC’s loans will be in the range of €150-2,500 with a payback period of 12 months. Loan products have been developed for both business and agricultural loans (individuals and groups). Fanikiwa’s provider profile is already live on the MYC4 platform – see it here.
The MYC4 training of Mtaji and Fanikiwa is ongoing, and we expect to see open loans from both institutions on the platform later this week.