Market research for sanitation: Tujijenge

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Sanitation Microfinance Tanzania

Working Group Meeting

Dar es Salaam15th May 2014

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(Tujijenge Tanzania Limited)15th May 2014

Institutional Background3

TUJIJENGE TANZANIA LIMITED is a Micro finance company that started operations in April 2006 and is operating through 5 branches located in both urban and rural areas in Dar es Salaam, Coastal region, Mwanza and Mara regions.

Our social mission is “To im p ro ve q ua lity o f live s o f fa m ilie s in Ta nz a nia thro ug h the p ro vis io n o f m ic ro fina nc e ”

Current Savings/Lending Activities & Portfolio

Tujijenge Tanzania’s focus is to provide financial services to its customers mainly offered via Group and Individual lending methodologies.

Other financial services include pre loan training to group clients, savings services and mobile phone banking where loan disbursement and loan repayment is done through mobile phones.

Currently, client outreach is over 8,000 active borrowers Outstanding loan balance is Tsh. 4.9 billion ($3,062,500)

Other WASH Activities (Outside SanFin Project)

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Tujijenge together with NSSF Tanzania is pilot testing the health loan product with the purpose of making it possible for low income business entrepreneurs to have access to affordable health insurance services

Funding health facilities, clinics and pharmacies form part of our business clients

Activities under SanFin Project6

Two staff attended a training on sanitation microfinance by Microsave which makes 3 of them as one had already attended this training before

With support from a facilitator from Microsave Tujijenge managed to develop a draft of sanitation microfinance product profile

Tujijenge managed to disburse a loan of Tsh. 5 million to Umawa sanitation project as our first step towards funding sanitation related activities that fir into our current lending activities

UMAWA business that Tujijenge funded7

Challenges Experienced/anticipated.8

Lack of capacity for staff to appraise sanitation related businesses

For start up loans, deemed too risky and needs funding which can share the associated risks of lending with the institution

Still many people do not see having good sanitation facilities as top on their priority chart

Lessons Learnt so far9

There is still a big market for sanitation microfinance

Staff selling the sanitation products must be groomed to specifically deal with this as it is not as other conventional microfinance products.

There is extra skills that sanitation product field staff needs to be equipped with the household appraisal process.

The product roll out might need to go along with education and awareness campaigns

Technical Support Requirements

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Training of staff on sanitation microfinance Training to credit officers on individual lending

and marketing skill Lending funds to mitigate on start up lending

risks Networking with other stakeholders to unlock

the product potential Conducting a mapping out process on areas we

need to reach out so as to finance sanitation related activities that fit into our lending activities

How will Tujijenge carry on SanFin activities beyond this project?11

With the identification of WASH enterprises, Tujijenge will be able scale up the sanitation business and repeat

If Tujijenge hope it can get a funding partner to do better with the sanitation product in the future. The funding will support help in sanitation business start ups

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