In line with efforts to rationalise the development of a strong micro-finance sector, the Government of Tanzania (GoT) has developed and adopted a Rural Micro-finance Policy covering all aspects of Micro-finance institutions (MFI) development through registration, governance, supervision and inspection. The design of the Rural Financial Services (RFS) Programme is fully consistent with this policy and would assist in ensuring its adoption throughout the programme area. The RFS Programme is a core part of International Fund for Agricultural Development’s (IFAD’s) country strategy for Tanzania, which is designed to create the necessary enabling environment to tackle the major constraints facing rural households.

Objectives and Scope

The Rural Financial Services (RFS) Programme is a nine-year programme, which has the overall objective of bringing the sustainable increase in incomes, assets and food security of poor rural households, by enhancing the capacity of rural poor to mobilise savings and to increase income-generating activities through the development of viable Rural Financial Services systems.

The programme effectively started in January 2002, and is being implemented over a period of nine years in four different zones - the Northern, Central, South East and South West zones. The Northern zone comprises of Same, Moshi Rural, Rombo and Mwanga districts in Kilimanjaro region. The Central zone comprises of Dodoma Rural, Kondoa and Mpwapwa districts in Dodoma region; and Singida Rural, Manyoni and Iramba districts in Singida Region, while the South East zone includes Mufindi and Njombe districts in Iringa region; and Songea Rural, Namtumbo and Mbinga districts in Ruvuma region and the South West zone is made up of Sumbawanga and Nkasi districts in Rukwa region; Mbeya Rural, Mbozi, Mbarali, Kyela and Rungwe districts in Mbeya region.

By December 2006 the Programme was working with 230 MFIs with a total membership of 54,867, total share capital of Tshs. 947.8 million and total savings/deposits of Tshs. 4,601.6 million.  The total cumulative value of loans issued to members by MFIs working with the Programme by December 2006 from MFIs stood at Tshs. 12,454 million

The Programme components:

1. Improvement of the Managerial Capacity and Performance of Grassroots Micro-financial Institutions (MFIs).
2. The Rural Financial Systems Development.
3. The Empowerment of the Rural Poor.
4. Monitoring and Evaluation and
5. Management and Coordination.

Target Groups

The target group is drawn from the poor households in the 21 Programme districts. Specifically, the programme targets poor rural households including farm households and the landless; Community-based Organisations (CBOs), Upatu & other solidarity groups, and the rural Micro-financial Institutions (MFIs) that serve them viz. Savings and Credit Societies (SACCOS), Savings and Credit Associations (SACAs).

Zones:

The RFSP is a nine-year programme, which is being implemented in three zones, the Northern, Central and the Southern zone.

• Staff Profile
• Detailed Information about RFSP