Rice banks provide alternative savings and empower cooperative business among the poor.
Microcredit was once hailed as the solution for global poverty. Today we share five reasons why Microcredit fails and what can be done about it.
Established in 2007, the Mama Bahati Foundation (MBF) now serves over 5,000 women across Iringa and Kilolo regions in the southern highlands of central Tanzania.
MBF was founded by the former Archbishop of Tanzania, Donald Mtetemela, after he met a lady called Mama Bahati who was struggling to make a living selling bananas in Iringa. The high interest rates she was forced to pay to buy the bananas wholesale on credit meant that making ends meet was nearly impossible. The Archbishop lent her a small sum at a much fairer rate of interest so that she was able to increase her profits, feed her family and repay the loan. Soon after this encounter, the Archbishop appealed to Five Talents, asking for support in establishing a microfinance project in Iringa, and MBF was born.
The Mama Bahati Foundation focuses its services on women who are typically even more marginalised in rural society than the men. Since the women typically bear responsibility for feeding, educating and caring for children, supporting women through microfinance means supporting the whole family. Enabling women to become financially literate income-earners can also empower them within the family and community.