2007年-世界发展银行全球_Tanzania_-_The_Rural_and_Micro_Financial_Services_Project_2页_305kb

Tanzania: Rural and Micro Financial Services Project Summary

Core Content

The Tanzania: Rural and Micro Financial Services Project was a Learning and Innovation initiative (2000–2004), supported by an IDA credit of US$2 million. The project aimed to develop a national policy framework for rural and microfinance in Tanzania, enhance industry knowledge and skills, and implement a systematic tracking and analysis system for microfinance institutions (MFIs). It was designed to create an enabling environment for private sector investment in microfinance, reducing the government's direct involvement in service provision.

Main Objectives

1. Develop a National Microfinance Policy (NMP) based on international best practices to establish a supportive regulatory environment.
2. Enhance knowledge and skills within the microfinance sector through capacity-building activities.
3. Implement a tracking and analysis system for all microfinance initiatives using common criteria.

Key Outcomes and Impact

• National Microfinance Policy (NMP): Adopted through a broad consultative process, the NMP provided a comprehensive vision and guidelines for microfinance practitioners and donors. It addressed critical areas such as pricing, delinquency control, financial reporting, gender equity, and governance.
• Legal Reforms: The Banking and Financial Institutions Act 1991 was amended to include microfinance institutions (MFCs) as a separate category of financial institution. This brought microfinance into the mainstream and increased its visibility.
• Regulatory Framework: The amendment introduced key regulations such as definitions of microcredit, allowed activities, capital adequacy norms, and minimum capital requirements. These regulations enabled the Bank of Tanzania (BOT) to better supervise the microfinance sector and ensure the viability of newly licensed MFCs.
• Tracking and Analysis Tool: The Directorate of Microfinance Institutions (DMFI) developed a unique tool to collect, input, and analyze data on MFIs, including banks, NGOs, and SACCOS. This tool became part of the BOT's regular monitoring and supervision activities.
• Performance Improvements: The project led to notable improvements in the microfinance sector:
  • 20% increase in the number of new retail outlets.
  • 72% growth in clientele.
  • 88% increase in outstanding loan portfolios.
  • 52% increase in savings deposits.
  • Non-performing loan ratio below 5% on average.
  • 26% and 46% increase in adjusted return on assets (AROA) and adjusted return on equity (AROE) respectively.
• Operational Guidelines for SACCOS: The project introduced international best practices, including:
  • PEARLS prudential ratios (Protection, Effective financial structure, Asset quality, Rates of return and cost, Liquidity and Signs of growth).
  • A modern Management Information System.
  • A code of ethics and governance structure.
  • Model bylaws for SACCOS.

Knowledge Sharing and Policy Influence

• Technical Workshops: Two workshops were conducted on Operational Risk Management for microfinance auditors and accountants, and Business Planning and Financial Modelling for microfinance institutions.
• Annual Conferences: Three annual conferences helped share knowledge and influence government policy.
• Government Policy Shift: A key conclusion from the project was that the government should not directly intervene in microfinance but instead support the creation of an enabling environment. This insight contributed to the development of Tanzania's second generation financial reforms.

Lessons Learned

• Project Design: The initiative was initially designed as a short-term Lending and Innovation Loan (LIL), but the process of legal reform and stakeholder consensus made it function more like a long-term investment project, highlighting the need for a more flexible project vehicle.
• Complementarity: Ensuring complementarity between policy, regulation, capacity building, and knowledge enhancement is essential for effective project outcomes.
• Procurement Alignment: Aligning donor procurement procedures with national procurement systems is crucial for smooth implementation.
• Capacity Building: The capacity of regulatory institutions should be supported by building the capacity of key cooperating ministries, such as the Ministry of Finance, not just the Ministry of Cooperatives and Marketing.
• Sustainability: Mainstreaming the project into the operations of the Bank of Tanzania (BOT) ensured its long-term sustainability, as activities continued even after the project's closure.

Conclusion

The Tanzania Rural and Micro Financial Services Project successfully laid the foundation for a sustainable and regulated microfinance sector through the development of a national policy, legal reforms, and the implementation of tracking and analysis tools. It emphasized the importance of policy and regulatory development, capacity building, and knowledge sharing in fostering a thriving microfinance environment. The project also highlighted the need for flexible project design and inter-ministerial collaboration to ensure its long-term success and impact.