I had a bit of a shot in the arm earlier this week. I was beginning to get a bit frustrated with the management of the micro-finance I’m working with. There are a number of things that I am not keen on. Anyway, I got out of the office for a client visit – traveling about 30 minutes by bus from the office. There I met a lady who has had 5 loans from TCBA. Her business is very simple… twice a week she travels from Arusha to the border with Kenya to buy salt, she takes about a ton and a half, which she sells wholesale to shops in Arusha. It seems somehow the salt is cheaper in Kenya. She uses the capital from TCBA to buy the stock, of which over the years she has been able to increase the amount considerably. The effect is that she has been able to save enough to build a house and send her daughter to school. It was a perfect example of both the need for credit and the power of micro-finance — and by the way, she had never missed a repayment in 5 years!
Clearly sub prime is not an issue in Tanzania!