The 2005 Aga Khan Agency for Microfinance Annual Report

three districts of Shurabad, Mominabad and Khovaling to Jilikul,Kholkozabad and Qumsangir.At December 2005, it had disbursed 550 loans to groups and individualsfor agricultural inputs, animal husbandry and trading activitiesfor total value of US$ 220,000. As this portfolio matures, FMFB-Twill absorb these activities, once it deploys in these areas.TANZANIA AND ZANZIBARMicrofinance activities in Zanzibar will be closely linked toAKTC’s conservation programme in the historic Stone Town.The programme will include housing rehabilitation and businessdevelopment services in and around the restoration of the StoneTown. These loans will work to reduce poverty by supportinglocal ownership, stimulating the development of tourism andensuring sustainability of the rehabilitation programme. In addition,the microcredit activities will aim at supporting civil societyinstitutions, help communities to expand agricultural and fishingactivities, build schools and address other social challenges.SMALL INPUTS OF CREDIT, SUCH AS ALOAN FOR THE CULTIVATION, PROCESS-ING AND SALE OF SEAWEED IN ZANZIBAR,MAKES POOR FAMILIES LESS DEPENDANTON A SINGLE SOURCE OF INCOME.In 2005, AKAM commenced microcredit operations in mainlandTanzania in the Mtwara and Lindi regions, which are among themost marginalised areas of the country. Mtwara is one of themost poverty-stricken of the 20 regions on mainland Tanzaniaand borders the even poorer Mozambique province of CaboDelgado, where AKAM also operates microcredit activities. Thisprogramme offers working capital loans for the establishment andexpansion of micro and small retail and commercial enterprises inthe urban centres and agriculture loans in the rural areas. Withintwo months of its operations, the programme had disbursed 16group loans with 50 beneficiaries in Masasi District amountingto US$ 15,223.A significant scaling up of the programme activities is envisagedin 2006 with special emphasis placed on achieving managementsynergies and operational efficiencies through linkages with theother AKAM programmes in East Africa.37