The role of informal microfinance institutions in saving

which underscores the principle of self-reliance that characterizes the financial cooperative
movement worldwide.
NGOs. A significant number of NGOs provide microfinance services to the poor and low
income households in Tanzania. None of the NGOs are subject to any regulation with respect
to the micro credit and financing activities they carry out. The microfinance NGOs are
registered legal entities, either as companies limited by guarantee (i.e., non-stock companies)
under the provisions of the Companies Act, or as Societies under the provisions of the Societies
Ordinance or as Trusts under the provisions of the Trustees Incorporation Ordinance. Two of
the largest microfinance NGOs in terms of outreach and client base are the Mennonite
Economic Development Association( MEDA) which utilizes the individual lending
methodology in catering to about 4,000 micro entrepreneurs, and PRIDE-Tanzania (affiliated
with the Kenya-based PRIDE Africa) which uses solidarity or group based lending
methodology.
The Presidential Trust Fund (PTF) had been privatized and has been operating as microfinance
NGO.
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