VisionFund Tanzania empowers the underprivileged to become financially resilient

With the number of adults accessing formal financial services in Tanzania dramatically rising, we are surely few miles away from landing that financial inclusion dream.

The only gap is the quality of formal financial services to disproportionately disadvantaged population segments, which remains in the hands of committed private sector players such as VisionFund Tanzania Microfinance Bank (VFT), after the Government’s remarkable strides in setting affable financial growth landscape.

Much as the rest of Tanzanians are curious about being well informed of the VFT’s activities and their role towards financial inclusion drive, The Citizen Reporter sat down with the VFT Chief Executive Officer (CEO), Mr Chilala Hakooma, for a detailed interview. Excerpts…

QUETION: VisionFund Tanzania Microfinance Bank (VFT) is currently the largest and the most rapidly growing micro­finance Bank in Tanzania. Would you keep us abreast of your story behind such an establishment?

ANSWER: VisionFund Tanzania Micro­finance Bank (VFT) has an interesting and impactful story. It’s part of the larger VisionFund International network, which is the microfinance arm of World Vision, a global humanitarian organization.

VFT was established to provide financial services to the underprivileged communities in Tanzania. The goal was to support economic development and poverty alleviation by offering microloans and financial services to those who typically lack access to traditional banking.

Its mission revolves around improving the livelihoods of the poor by providing them with the financial tools they need to grow their small businesses and improve their quality of life.

Over time, VFT has expanded its reach across Tanzania, growing from a small institution into the largest Microfinance Bank in the country. This growth has been driven by the increasing demand for microfinance services and the organization’s commitment to reach more communities.

VFT has introduced various financial products tailored to the needs of its clients, including agricultural loans, small business loans, and savings products.

These innovations help clients manage their finances better and grow their businesses.

By working with World Vision Tanzania in the neediest rural areas of the country and addressing the financial needs of the underprivileged communities, it has become a significant player in Tanzania’s microfinance sector, contributing to economic development and poverty reduction.

Q: Financial inclusion facilitates an inclusive financial sector, whereby individuals and businesses have access to the usage of a broad range of affordable and quality financial products and services that improve financial well-being and livelihood. Where do you lie in this commitment?

A: VFT supports and promotes financial inclusion through a diverse range of products and services, including microloans for small businesses, agricultural loans, savings accounts, and insurance products.

These offerings ensure that clients have access to the financial tools necessary for economic growth and stability. VFT also provides digital platforms, such as mobile banking services, along with a wide network of branches, making it easy for clients to access financial services at competitive and affordable rates in the market.

Q: According to the Fin-Scope Survey 2023, the level of access to the use of formal financial services increased to 89 percent and 76 percent in 2023 from 86 percent and 65 percent in 2017, respectively despite the level of exclusion remaining high for population segments such as rural residents, smallholder farmers, youths, and women. How close are we to achieve this goal as a country?

A: While significant progress has been made, achieving full financial inclusion in Tanzania requires continued efforts to address the barriers faced by specific population segments.

By expanding financial infrastructure, leveraging digital solutions, tailoring financial products, and promoting financial literacy, Tanzania can work towards greater financial inclusion and closer alignment with the goal of universal access to quality financial services.

The journey is ongoing, and sustained commitment and innovation will be key to overcoming remaining challenges and achieving inclusive financial growth.

Q: Financial technologies are vital tools towards achieving the financial inclusion drive in this ever-evolving financial landscape. What is in store for VFT to contribute by a hundred percent to the goal?

A: For VisionFund Tanzania to make a significant contribution towards achieving full financial inclusion through financial technologies, several strategies and initiatives can be pursued. 

Leveraging technology can enhance their reach, efficiency, and effectiveness in delivering financial services. By integrating these strategies, VisionFund Tanzania can significantly enhance this role in driving financial inclu­sion.

Financial technologies offer powerful tools to reach more people, streamline services, and provide tailored solutions.

With a focus on expanding digital services, enhancing product offerings, improving financial literacy, and ensuring security, we, as VFT, can contribute substantially to achieving full financial inclusion and making quality financial services accessible to all.

Q: Right human resources can drive up quick set objectives in any environment. How potential and equipped are your staff to carry such a significant agenda on their shoulders?

A: For VFT to ensure our human resources are well equipped and capable of driving our objective, the management makes sure that the staff are well equipped with appropriate training, leadership development, leadership development, and have a supportive environment that rewards exceptional performance.

At VisionFund Tanzania Micro­finance Bank Ltd (VFT), we ensure our human resources are well-prepared to drive our objectives by focusing on several critical areas:

1. Recruitment of staff who are fit for purpose and have a sense of calling to our work.

2. Capacity building, providing the appropriate training to equip staff with appropriate skills to deliver according to job expectations.

3. Access to Technology: Our staff have access to the latest technology and tech support, enabling them to work efficiently and stay ahead of industry trends.

4. Recognition and Rewards: We recognize and reward our staff for achievements including motivating and engaging them.

5. Feedback Mechanisms: We implement feedback mechanisms and conduct regular assessments to ensure continuous improvement and alignment with organisational goals.

By focusing on the above, we ensure that we retain our staff and that we foster a culture of high performance.

Q: What range of offerings support your mission towards financial inclusion?

A: VisionFund Tanzania Micro finance Bank’s range of offerings reflects our commitment to financial inclusion by providing accessible, affordable, and relevant financial products and services.

By addressing the diverse needs of different client segments and leveraging technology and education, VFT aims to create a more inclusive financial environment and improve the financial well-being of underprivileged populations.

Q: What are milestones and setbacks did your financial inclusion journey experience?

A: The journey towards financial inclusion for VisionFund Tanzania is marked by both significant achievements and challenges.

Milestones such as expanding outreach, developing diverse products, and integrating technology reflect progress in making financial services more accessible.

We have reached some key milestones such as growing our asset book by 33 percent and our clients by 78 percent, and impacted the lives of 230, 457 children.

However, setbacks such as low financial literacy especially among the rural communities makes it hard to facilitate the financial services, thus there is a need for redoubling efforts by all stakeholders in educating the community about the financial services.

Addressing these setbacks while leveraging successes will be crucial for VFT to continue advancing financial inclusion and achieving our objectives.

Q: What message would you want to share with the rest of Tanzanians?

A: I want to express my deep gratitude for the trust and support you have shown us over the years. Our mission has always been sincere that we believe in brighter futures for children.

Empowering families to become financially resilient. Unlocking economic potential for communities to thrive.

We believe that every Tanzanian deserves the opportunity to build a better future for themselves, their families and children.

Whether it’s through access to microloans, agricultural financing, or savings accounts, we are committed to providing the financial tools that can turn dreams into reality.

Our vision is to see a prosperous Tanzania where everyone, regardless of their background, has the means to achieve economic growth and stability.