ECLOF Tanzania is a microfinance institution that provides loans to churches, individuals, and businesses. It has experienced significant growth in its portfolio and staff since re-launching in 1994. ECLOF conducted market research that identified demand for sanitation financing products. It developed concepts for loans to fund toilet construction, sludge collection pits, and sanitation businesses. However, ECLOF faces challenges in assessing sanitation businesses, identifying opportunities, and overcoming perceptions about sanitation financing. It will need training and funds to strengthen its ability to offer sustainable sanitation loans beyond the current project period.

1. 1
Sanitation Microfinance Tanzania
Working Group Meeting
Dar es Salaam
15th May 2014

2. 2
(ECLOF (T) LTD
ECUMENICAL CHURCH LOAN FUND TANZANIA
LTD )
15th May 2014

3. Institutional Background
3
 ECLOF Tanzania was established as a department of the Christian
Council of Tanzania in 1961, with the mission of giving loans to
Churches and Church related institutions. It ceased to operate in the
80’s and was re-launched as an Non- Governmental Organization
(NGO) in 1994
 Portfolio grew from TZS 1,900,000,000 in year 2010 to TZS
3,000,000,000 at the end of year 2013.
 The number of staff has grown from one volunteer staff in 2006 to the
current 55 full time employees.
 Annual Income of the institution has grown from TZS 6,841,909 in the
year 2006 to TZS 1,040,368,358 in the year 2012.

4. Current Savings/Lending Activities & Portfolio
 The organization realized income amounting to TZS
1,270,414,401/= against targeted goal of TZS
1,252,000,000/=.
 The current saving is TZ 400M
 The lending activities are:
 ECLOF Tanzania is currently serving the market
through 6 products, the main ones being Jikwamue and
Jitegemee which consist of 65% of the portfolio.

5. Product
Description
Percentage
of Portfolio
JIKWAMUE Delivered through solidarity groups. Group size ranges
from 20 to 30 clients, and loans range from TZS 200,000
(USD 118) to TZS 1,000,000 (USD 591)
36%
JITEGEMEE Also delivered through solidarity groups. The average
group size is five members. Loans range from TZS
1,000,001 (USD 591) to TZS10,000,000 (USD 5910)
32%
DIAKONIA Institutional loans given to churches, para-church
institutions and schools mainly for infrastructure
development
11%
KIPATO Payroll deduction loans given to gainfully employed people
with the guarantee of the employee
1%
AGRICULTURE Loans given to small-scale farmers. This started in Mbeya
region and is currently also being piloted in Moshi and
Arusha
20%

6. Activities under SanFin Project
6
 Training on Market Research-
 2 ECLOF staff was trained by MicroSave on Market research in January
2014
 Marketing Research
 As a result of the training ECLOF conducted a market research in the first
week of march
 A total of 8FGDs were conducted in 3 days with 95 respondents
 From the research finding ECLOF developed some lending product
concepts
 Sanitation Financial Product Concept
 Toilet/Bathroom Construction/Improvement for Households, Businesses
and Institutions
 Integrated sludge collection pit and bio gas production unit construction
 Working capital for sanitation businesses

7. Challenges Experienced
7
 Limited funds to carry out WASH financing
 Lack of skills in assessing/appraisal of sanitation
business among the credit officer
 Lack of experience in marketing/identifying sanitation
type business opportunities
 Poor perception among customers on sanitation
financing
 Most of people will have multiple loans

8. Lessons Learnt so far
8
 There is high demand for the WASH activities /
products
 The customers appreciate the benefits of improved
toilet and bathroom .
 By providing sanitation loans ECLOF Tanzania will
improve the general well being of its customers.

9. Technical Support
Requirements9
 Funds –for supporting the WASH product
 Training on sanitation to management team to
get buy-in.
 Training to course on sanitation business
appraisal and marketing of the products .
 Sanitation awareness to customers

10. How will ECLOF carry on SanFin activities beyond this project?
10
 ECLOF TZ will train its customers concerning
the WASH products (awareness ) to increase
uptake
 Product like biogas loans are sustainable
because it reduces other costs in the household.