Since its establishment in 2017, Serene Microfinance Limited has been a beacon of hope for individuals and businesses striving for financial empowerment. Guided by the vision “Where vision gets support,” the institution continues to make a tangible impact on the lives of Tanzanians through innovative financial solutions and a steadfast commitment to economic transformation

A journey of Transformation

Eight years back, Serene Microfinance Limited began its journey with a vision to bridge the financial gaps by helping individuals and corporates to realize their true potential.

It all started with the idea that everyone deserves a chance to turn their vision into reality. Whether it’s an individual striving to improve life, a small business owner to a super profit, or an employee pursuing career dreams, Serene Microfinance stepped in to provide the support they needed.

Serene Microfinance’s Acting General Manager, Grace Kiwelu said the institution has become a trusted partner for thousands seeking financial solutions that truly make a difference.

Grace Kiwelu, Acting General Manager, explains, “The main goal of establishing Serene Microfinance was to provide small and medium-sized loans to help the people of Dar es Salaam improve their economic status. Our ambition is to expand services to neighboring regions and eventually grow into a bank serving a diverse range of clients.”

The institution’s tailored loan products have enabled entrepreneurs to grow businesses, families to secure homes, and communities to envision brighter futures.

Increasing Impact by Empowering Traders at Mabibo Market

In a bid to achieve its motto, the company has strategically increased its number of beneficiaries year-on-year, by opening up more financing opportunities for underprivileged communities.

Through its Sokoni Loan the company has provided loans to over 70 small traders at Mabibo Market in the commercial capital, Dar es Salaam.  This Loan product, specifically designed for market traders, addresses their need for accessible and affordable financing.

For years, many of these traders faced limited capital, constraining the possibility of their businesses to grow. Serene Microfinance provided Mabibo traders with tailored loans, enabling them to expand operations, boost incomes, and positively impact their families, suppliers, and the wider economy.  Many traders have reported social benefits, such as being able to cover their children’s school costs, thanks to their growing businesses.  

Diverse Financial Products for Varied Needs

Serene Microfinance offers five loan products, each designed to cater to different customer segments:

• Small and Medium-Sized Enterprises Loan: For businesses needing financing for 3 to 12 months.
• Employment Loan: Targeting government and private sector employees with collateral requirements like vehicles or electronic devices.
• Emergency Loan: For urgent needs, with collateral options such as motorcycles or electronics.
• Salary Loan: Designed for salaried employees, secured through employer guarantees.
• Sokoni Loan: Short-term loans ranging from Tsh300,000 to TZS1 Million for market traders.

Stephen Range, Credit Manager, emphasizes, “We provide loans that meet customer demands with low interest rates, starting from TZS 300,000/=, while complying to customer assessment tools known as 5Cs: capital, character, capacity to pay, collateral (valuable asset), and condition. These factors not only help the company achieve its sustainability goals, but also enable clients to access the most suitable financial facility according to their needs.”

Beyond Loans: Building Financial Literacy
Recognizing that access to credit is still a challenge in Tanzania, Serene Microfinance goes beyond loan provision by offering financial education to clients. This initiative enhances financial literacy, reduces default rates, and empowers clients to make informed decisions, ensuring sustainable growth for both the institution and its customers.

According to the 2023 Finscope Survey, only 4% of Tanzanians access loans from microfinance institutions, with most relying on informal sources. By addressing this gap, Serene Microfinance is contributing to a more inclusive financial ecosystem.

Looking Ahead
With a vision to transform into a bank, Serene Microfinance aims to expand its reach and serve a broader range of clients. “Our goal is to provide financial support to as many people as possible, ensuring that everyone has the chance to realize their dreams,” says Kiwelu.

Through innovative products, unwavering support, and a commitment to creating lasting impact, Serene Microfinance is helping build a future where financial barriers are overcome, and opportunities abound for all Tanzanians.