Uratibu wa Vikundi vya Kijamii
NEEC promotes establishment and strengthening of economic communal groups, especially Community Financial groups (CFGs). In implementing this function, NEEC Collaborates Regional and Local Government Authorities and Private Sector. This initiative is aimed at promoting the informal financial sectorin Tanzania and ensure that informal financial system is well coordinated and it benefits more Tanzanians and its contribution to the national economy is easily determined. CFGs are self-help organizations, owned and self managed by members to mobilize their own resources and extend credit to their members. These include Rotating Savings and Credit Associations (ROSCAs), Accumulated Savings and Credit Associations (ASCAs), Village Community Banks (VICOBAs), Village Savings and Loans Associations (VSLAs), etc.Recently, CFGs in Tanzania have attracted attention of investors, policymakers and donors in the financial markets. However, despite their importance in enhancing financial services for the poor both in rural and urban areas there is:
- Lack of comprehensive information on the existence of CFGs and their promoters/ practitioners;
- Inadequate mechanism for coordination of CFGs and their promoters/practitioners;
NEEC has set up a mechanism for coordination of the CFGs in Tanzania that will be able to inform on their performance and required support to make them more effective. The mechanism involves conducting of regular meetings with stakeholders especially the umbrella organizations such as VICOBA Federation of Tanzania (VICOBA-FETA), Tanzania Informal Microfinance Association of Practitioners (TIMAP) and Inter-Religious VICOBA (IR VICOBA). Other collaborators include President’s Office-Regional Administration and Local Government, Ministry of Finance and Planning, Bank of Tanzania and Financial Sector deepening Trust.
The intention is to enhance coordination of CFGs and contribute in scaling up financial inclusion and ensure that the majority of Tanzanians have access to financial services.These efforts are geared towards ensuring that:
- Tanzanians increasingly benefit from CFGs through savings accumulation and access to capital;
- A strong coordination structure of CFGs fromLGA to National level with ease flow of information to inform plans, strategies and other decisions is in place;
- CFGs apex organizations are established at the district level;
- An appropriate and user-friendly management information system for CFGs (digital data collection) and a National data base for CFGs and their promoters is established
In this undertaking the following have been achieved:
- Guidelines forreporting and registration of CFGs was developed and became operational since October 2016;
- Regional and LGAs empowerment desk officers/coordinators (who work closely with NEEC) have been trained on the use of CFGs reporting and registration guidelines and formulation and operationalization of CFGs
- Manuals for establishing CFGs have been reviewed and improved;
- The CFGs entrepreneurship training manuals are being developed (these include: a framework for the CFGs training guidelines; an implementation Strategy for the CFGs training guidelines; and an action plan for implementation of the CFGs training guidelines).
- A framework for monitoring and evaluating CFGs activities has been developed and operationalized;