Small Enterprise Development Agency

Gross Loan Portfolio USD, 2010: 3.2 million

Number of active borrowers 2010: 17,167

Average loan balance per borrower USD, 2010: 184.1

Deposits USD, 2010: 616,221.6

Assets USD, 2010: 4.7 million

Number of depositors 2010: 17,167

Mission:

To provide quality and sustainable microfinance services to individuals and communities to foster livelihood and development and enhance life in all its fullness

Background and Main Challenges:

Need for sufficient fund for scaled up operations and meeting transformation costs as SEDA transform from its present NGO status to a Company Limited by shares and then to a regulated Financial Institution. Other challenges include upgrading of staff skills, branch service delivery structure and ... Read more

Address:

India Street Blue Plaza Building 6th floor Box 1546

Arusha

Tanzania

Phone:

+255 27 254 8218

Fax:

+255 27 254 8273

Email:

tza-seda [at] wvi [dot] org

Main Funding Sources:

Loans

Products and Services:

Loans

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1996

FYE:

31-Dec

Current Legal Status:

NGO

Regulated:

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Women	1
Clients living in rural areas	2
Clients living in urban areas	3
+ Development goals (ranked by importance)
Increased access to financial services	1
Children's schooling	2
Gender equality and women's empowerment	3
Poverty reduction	4
+ Poverty targets
Low income clients
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Loans for agriculture
+ Savings products offered
Compulsory savings accounts (cash collateral)
+ Compulsory insurance products required
Compulsory credit life insurance
+ Voluntary insurance products offered
+ Other financial products and services offered
+ Non-financial services offered
+ Enterprise services offered
+ Education services offered
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Flat interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Outreach to remote/rural communities
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use

Partnerships

Current
Name	Relationship
INAFI	Network Affiliation
Oikocredit	Funding
TAMFI	Network Affiliation
Vision Fund	Network Affiliation
World Vision	Network Affiliation

MFI Report