Revolving Loan Scheme Project

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About

Location: Tanzania
Key(s): Economic Empowerment

Mategemeo Women Association, a non-governmental organization based in Tanzania, has launched a new project based on the belief that having savings is among the most crucial tools for women in Tanzania to break the cycle of poverty and have financial security in the event of an emergency. The organization has previously partnered with Rockflower to remediate their acute water problem via the creation of shallow wells. Other projects led by the organization include the establishment of a solar powered grain mill, the rehabilitation of unprotected water fountains from pollution, training on human rights and water and sanitation for households and an advocacy campaign against the practice of female genital mutilation.

The Revolving Loan Scheme Project will work with twenty women who wish to start or boost their micro-projects in order to generate consistent income and break the cycle of poverty. Once the borrowers receive their funds, they will pay back their loans with 2% interest over the course of six months, which will allow the organization to cycle the money to other women looking to start small businesses. Some of the existing businesses in the program include the management of a poultry farm, and the sale of products like groceries, second hand clothing, shoes, stationery, and cosmetics.

The women will also receive free training in small business management, bookkeeping, calculating revenue, marketing and leadership which will allow them to successfully manage their businesses and finances. The benefit of this program is that the money in the fund will continue to be recycled and the revolving funds will grow over time, and reach more and more women.

Additionally, Mategemeo Women Association will be asking each of the women to contribute 15% of their net monthly income to an emergency welfare fund, which will be used to help members in the event of an emergency. This mutual aid fund will provide peace of mind to the beneficiaries, as they begin their businesses and face the uncertainties of maintaining financial stability and independence.