CCI is one of the three partners of the action-research which received susbatntial support from MicroSave, microfinance specialists. In this presentation, Theresia Ntanga describes the support recived from MicroSave and how this has influenced CCI changing it sapproach for delivering financial services for sanitation.

1. 1
Centre for Community Initiative (CCI)
Sanitation Microfinance Tanzania Working
Group
Theresia Ntanga
Dar es Salaam
4th December 2014

2. Institutional Background
2
 CCI Is a Non-profit Organization (NGO) established in 2004
 CCI mobilizes community to form savings and credits schemes
 Daily savings contribute monthly to their Development Fund which
belongs to thr Tanzania Urban Poor Fund (TUPF)
 TUPF/Jenga Fund
 It is a Revolving Fund established for the purpose of
financing different livelihood projects (e.g. purchases of land,
houses improvements(
 Jenga also provides WASH loans. Outside SanFin:
 Water loans
 Toilet construction loans: over 780 loans provided = over
Tsh.190 Million (USD 115,853) disbursed
 Main issue: low repayment rate

3. Activities under SanFin Project
3
 Carried out Market Research in order to:
 Establish reasons for low repayment rate
 Explore additional sanitation loan product that Jenga Fund can offer
 Evaluate current delivery mechanism with a view to make more
efficient and responsive
 A total of 16 FGDs were conducted with 166 respondents
 Learning from market research:
 There is demand for sanitation loans – need to design a new financial
package (to suit the demand)
 But, challenges: customers consider loans given under the Jenga Fund
as grants; Dependence on federation committee to remit payment;
Low/irregular income in the informal settlement is a threat to loan
repayment ; Lack of livelihood loans; Due to poor repayment rates, the
amount available in the revolving fund is low
 Outcome: There is a need to reform the Jenga Fund, to offer loans

4. Pilot-testing preparation
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 CCI attended training on pilot-testing
 Pilot-testing preparation in order to
 Define financial product
 Prepare staff and define targeted area
 Final products characteristics
 Interest rate is 30% annually
 Loan range is from 50,000 to 1,500,000/=
 Loan period is one year
 Disbursement
 The loans are provided in terms of materials
 Local builders are paid direct from CCI/TUPF
 Market segment
 CCI was able to penetrate in new area where there were no Federation network/groups,
the area called Kiwalani ward in Ilala Municipality
 Kiwalani ward has a population of 82,000 with 6000 houses.

5. Pilot-testing roll-out: Marketing
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 Staff deployed
• CCI recruited a loan officer for marketing and selling for the microloan
for sanitation
 Extensive marketing to get more clients
• There is various mechanism of marketing used to find market, these
were uses of existing groups such as VICOBA and others as an entry
point. Moreover door to door advertising using brochure and notice
boards describing the advantages and the process of sanitation loans.
 Linking the initiatives with Local Government officials
• For ensuring that the project is successful, it was realized that involvement of the
local government officials will be critical to support marketing, monitoring and
follow up use. On this local government leaders help to have community
meeting to market our sanitation loan product

6. Pilot-testing roll-out: loans
disbursement6
 Testing the sanitation microfinance
• 5 loans disbursed and other five are on the process of
being approved
• This is part of marketing strategy: some community
members want to observe such kind of the loan
before asking access to loan
• The demand for sanitation loans increase in that area
after 5 loans disbursed, more than 60 clients demand
for sanitation loan
 What was the uptake?
 CCI will continue to provide loans for sanitation in that
settlement and other areas with same loan conditions
under

7. Planned activities
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 Based on pilot-testing, will CCI carry out offering
products specifically designed for sanitation on
different areas
• Pit emptying – Gulper technology
• Toilet improvement
• Toilet construction
• Waste management for community groups
 There one settlement called Yombo from Temeke
Municipality showing interest to access sanitation
loans from Jenga Fund (20 people asking for the
loans)

8. Lessons learnt from SanFin (1)
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 Doing marketing research
 Developing loan product
 Assessing and Vetting of clients before accessing sanitation loans
which done by CCI staffs
 Clients training before accessing loan
 Use of loan officer for loans follow up
 Having specific date for loan repayments / repayments schedule
 Wider chance of client to negotiate with local builder about construction
cost

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Thank you
Theresia Ntanga
teddyntanga@yahoo.com