The role of informal microfinance institutions in saving

• Review, amend or enact registrations, including administrative procedures and
requirements in order to enhance the growth and sustainability of cooperatives and the
apex cooperative organizations in a rapidly changing socio-economic environment;
broaden and deepen the outreach of cooperatives among the poor, particularly those
in the rural or agricultural sector; and promote the participation of women and
vulnerable groups in cooperatives across all sectors.
• Promote the greater participation of cooperatives and cooperative organizations in
poverty reduction, in particular the design, implementation and monitoring of
poverty reduction strategy programme where they exist. In this regard, it will be
important to also take steps to improve the collection and dissemination of
information and data on the role of cooperatives in poverty reduction and their
contribution to social and economic development.
SUSTAINABLE DEVELOPMENT AND DONOR ASSISTANCE
During consultations, stakeholders appeared rather disturbed by the whole issue of donor
support. They pointed out that most rural people are small-holder farmers and livestock
keepers who are very poor. It was estimated that in Chimala and Madibira villages in Mbeya
Region approximately 60% of the villagers are absolute poor. So when a discussion was held
as to ‘’whether aid has brought any significant improvement to their living standards ‘’, most
of them thought the gains received from aid is very small. This was said in comparison to
‘’what they hear’’, that is Tanzania has a huge debt to pay and that it receives enormous
donor support. When further asked ‘’why they thought aid has not brought any relief/benefit
to them’’, the answer was ‘’ look at the people; their economic and living conditions tell for
themselves, they are very poor’’.
Some reasons were given as to why aid has not had any impact in eradicating poverty. The
reasons given were divided into two groups:-
(a) Problems which are caused by Tanzanians themselves. These include the following:-
( i) Not putting into considerations the issue of ‘’sustainability of projects’’
(ii) The target group not owning and not having the decision for their ‘’project finances’’
76