A case of Manyire Commercial Village in Arusha, Tanzania

Vukani, Ufugaji and Mkombozi Commercial Producer Groups (CPGs) of Manyire Commercial Village started their group savings and credit scheme, HISA, in May 2008 after receiving training from Farm Concern International (FCI) in collaboration with Access to Market (ATM) in Tanzania. The scheme is managed through the financial subcommittees in the respective GPGs.

The members started by contributing Tshs. 500 per person per week and gave one of the group members who had requested a loan at an interest rate of 10% on a weekly repayment basis. The groups have so far raised their savings contribution amount to Tshs. 2,100 per week whereby Tshs. 100 is allocated to social welfare for the community and managed through the groups’ social welfare subcommittees.

Enhanced record keeping culture

Every commercial village member is given a savings and credit pass book (see above).
In the saving pass book, they record the amount in form of shares where each share is equivalent to Tshs.500. They have customized their operations to the village level and use a stamp designed in the form of an animal symbol to represent one share.
For the credit they record the date loan was taken, total amount of loan and weekly repayments.

Procedures for loan application

The groups operate with a loan application form on which the applicant fills her/his name, amount required, the purpose and collateral/ property which can be taken from him/her in case of failure to repay the loan (Surety).
The form should be signed by the loaner’s spouse or immediate family member, one witness, one village government official and the group’s chair person once the group members approve the loan.  The penalty for late payment is Tshs 500 per week. The savings and credit scheme is a resource mobilization initiative for investment into agribusiness activities at commercial village level.