WEDAC, as a company limited by guarantee, was registered on 26th June 2000 under the Companies Ordinance (Cap. 212). WEDAC was incorporated to take over the operations carried out by Monduli Rural Credit Scheme for Women (MRCSW), which was initiated by the Monduli District Council in 1993 to address the credit needs of rural women in Monduli District. In June 1995, the scheme was transferred to a community based Non-Governmental Organization (NGO) called Komolonik Integrated Development Organization (KIDO). Following the recommendations of a Danida-funded consultancy, the scheme was incorporated as WEDAC in June 2000.
Due to policy change and an introduction of a Microfinance Act 2018, WEDAC Company Limited was renamed to WEDAC Microfinance Institution Limited on 12th March 2021. The change was necessary to obtain an operational license from the Bank of Tanzania (BOT). The institution is currently updating various manuals as per BOT requirements and avoid penalties.
WEDAC is a microfinance institution dedicated to providing financial services to rural households, primarily targeting women. With its head office in Monduli District, the institution operates through village centers to reach rural clients. WEDAC operates in two regions: Arusha, covering Monduli District and Manyara, covering Hanang, Babati, and Mbulu Districts. The future plan is to expand to all districts in Arusha and Manyara before going to other regions.
Vision
“To become a model rural-focused Microfinance Institution in the provision of affordable, inclusive financial services in Tanzania”
Mission
“To improve the standard of living among rural households through provision of affordable inclusive financial services mainly to women”
[1] An inclusive financial system is one that services all clients, not just the relatively well-off. It reaches out to poor and low-income clients, providing them with affordable financial services tailored to their needs.
Honoring Martha Jachi Umbulla
Martha Jachi Umbulla, the late project Coordinator for MRCSW, played a crucial role in the inception and decision making process of WEDAC. She served as the General Manager for WEDAC Company Ltd from 2000 to 2004. Martha’s dedication to supporting rural women, whom she viewed as key players in the development of rural families and the nation, led to her appointment to various government positions, including District Commissioner for Kiteto and Kongwa Districts and a Member of Parliament for Women Special Seats for Manyara, a position she held for over 15 years. Despite her many responsibilities, Martha remained a key advisor and a member of the Board of Directors for WECAC until her passing. Her belief that empowering a woman empowers the family unit and society is evident in the success stories of women who have benefited from WEDAC’s credit facilities over the past 20 years.
Products and Services
WEDAC Microfinance currently offers two products: group lending and individual lending. Additionally, it provides non-financial services such as training to build capacity and financial literacy among target market segments. Group lending is the institution’s main primary product.
Group Lending Product
WEDAC’s group lending product follows a modified classic model where each consists of five members. Members hold individual liability for their own loans and joint liability for their group. Groups are administered by elected leaders called Village Association Executives (VAE). Each association comprises a minimum of ten groups (50 members) and a maximum of 20 groups (100 members). Members’ relationship within the group is their first line of collateral, savings as the second, and pledged items are the third (depending on the size of the loan). Each group is required to meet at least twice per month; while the Village Association should meet once per month, while the Village Association meets once per month.
Individual Loan Product
Targeting medium entrepreneurs who do not fit into the group setup, the individual loan product has not seen significant growth due to limited product knowledge.
Future Plans
WEDAC plans to introduce additional lending products, such as:
- Salary loans for government employees
- Renewable energy loans
- Water sanitation loans for women in rural areas
These products will be introduced based on funding availability and the addition of new human resources.
Contact Information
Region: Arusha
District: Monduli
Ward: Monduli Mjini
Postal Code: 23401
Street: Sinoni Kati near SDA Church, SDA Road, Plot # 339, Block R, House # 26
P.O. Box: 156
Email: administrator@wedac.or.tz
Mobile: +255 752 117 301
Website: www.wedac.or.tz