The role of informal microfinance institutions in saving

economy with respect to the unhealthy state of MFIs in Tanzania. Opinions have
been as varied as the number of people one interview as to why MFIs in Tanzania
have not been thriving in spite of all incentives and support policies and
pronouncements by both the central and local governments. Year in, year out, there
have been a lot of emphasis on and budgetary allocations to that sub-sector of the
economy.
Many have argued that the MFI sub-sector in Tanzania has not been thriving largely due to
poor implementation of several government policies as well as frequent policy changes or
what they call policy inconsistencies. The poor policy implementation is also said to be
deeply rooted in poor corporate governance and unethical practices, which abound in the
Tanzanian public service. The overwhelming control and management of most business-
supporting structures and facilities by government departments and agencies also aggravate
the situation.
4. To make appropriate recommendations for solving or at least alleviating the identified
problems and challenges of the MFIs. The study will attempt to identify all the challenges
and militating factors against the success of MFIs, analyze them and then proceed to make
appropriate recommendations towards alleviating them. It is said that a clear and precise
definition of a problem represents half the solution-hence, identifying and crystallizing the
key problems of the MFIs would lay a solid foundation for mitigating if not solving them
out rightly.
1.1.6: RESEARCH QUESTIONS
The following is a list of PhD research questions for which the research project is expected to
come up with answers.
1. Does the performance of SACCOs facilitate the country economic development and
sustainability?
2. What factors are considered the most important in appraising the performance of
SACCOs in Tanzania?
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