With the theme of Rural Finance and Agricultural Transformation in Tanzania, the conference kicked off yesterday 13th July 2017 at Julius Nyerere International Convention Center, Dar es Salaam.
The forum was officially opened by the state minister of planning and finance, DR Philip Isdor Mpango who in his speech said that people in the villages are not really included in finance service as the finscope2017 research states,its only 6.8% of them who obtains the financial support,and yet the numbers of those who live in urban and rural areas are different and we see they are three times more than those living in the city and yet they are not there and they are not supported.The figures for the entreprenuers are only 620,000, which is about 20% of all of them who obtain the loans and more than 70% of them did not use any financial support and that is the challenge.Also according to the research that was conducted in 2014,finscope says that 26.8% of workforce does not have any financial support. There are definitely challenges for financial institutions to be able to reach everyone ,especially in rural areas and many challenges are infrastructure, technology,financial awareness among communities and high interest rates payed for financial services.
He outlined the way forward by different roads , advised the entrepreneurs to do the following things ,To have the saving culture individually in and in SACCOS,Restrict measures before taking the loan-know why you are taking the loan and use it for business only and obtain knowledge or ideas for the business you want to start.
Also he recommended the financial institutions to improve financial education offered to the community-the people who go for loans don’t fully understand the rules and policies of borrowing, give women the priority and also do followup on progress of loans offered.
He promised that the microfinance bill will be passed probably in the year 2017/2018.
The conference continues today with many issues affecting rural micro finance being discussed.