DEDICATION

Firstly, I want to dedicate this project work to my parent Mr. and Mrs. Isango without them I
could not be where I am. They encouraged me to study hard and learn much through practice that
until this moment I am applying as my driving force and contributed much to my performance.
moreover, I would like to dedicate this project work to my friends at IFM in Dodoma campus.

ACKNOWLEDGEMENT

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I would like to say thanks to almighty God for keeping us alive and health as we continue
with our daily activities and also am glad to appreciate all people who help to complete
this project work include Access Microfinance Bank for their help through provide useful
information which helped me to complete this project work , thanks to my family for their
encouragement towards me which in one way or another lead me to complete of this project
work .

My sincerely appreciations also go to my project supervisor Dr Macha and also to my fellow

student in IFM for their constructive advice that made the completion of my project work
possible. they motivate me to end up my project report.

Lastly, I express my thanks to the Institute of finance management (IFM) for their better
guidance and theory which enable me to undertake my project report up to the completion.

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 LIST OF ABBREVIATIONS

AMBT Access Microfinance Bank Tanzania

ATM Automated Teller Machine

MFIs Micro Finance Institutions

BOT Bank of Tanzania

MFIs Micro Finance Institutions.

MSE Micro and Small Enterprises.

MSMEs Micro, Small and Medium Enterprises.

SWIFT Society Worldwide Interbank Financial Telecommunication

SMEs Small and Medium Enterprises.

SSA Special Savings Account.

TISS Tanzania Interbank Settlement System.

TIB Tanzania Investment Bank.

TT Telegraphic money Transfer.

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 EXECUTIVE SUMMARY
The primary objective of this project at Access Microfinance Bank in Tanzania was to conduct a
comprehensive analysis of the Tanzanian financial sector and provide valuable
recommendations. To achieve this, a mixed-method approach combining qualitative and
quantitative research methods was employed. The main findings revealed the current state of the
financial sector in Tanzania, highlighting areas of improvement and potential opportunities for
Access Microfinance Bank. The analysis emphasized the need for strategic partnerships,
innovative product development, and enhanced customer engagement to ensure sustainable
growth and impact. The recommendations provided in this project work aim to guide Access
Microfinance Bank in optimizing its operations and services to better serve the Tanzanian
market, ultimately contributing to the overall development of the financial sector in the region.

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 TABLE OF CONTENTS

DEDICATION................................................................................................................................................i

ACKNOWLEDGEMENT.............................................................................................................................ii

LIST OF ABBREVIATIONS......................................................................................................................iii

EXECUTIVE SUMMARY..........................................................................................................................iv

TABLE OF CONTENTS...............................................................................................................................v

CHAPTER ONE............................................................................................................................................1

1.0 Introduction..............................................................................................................................................1

1.1 Objective of project..................................................................................................................................1

1.2 Tanzanian financial sector.......................................................................................................................1

1.2.1 Banking Sector..................................................................................................................................1

1.2.2 Non-Banking Financial Institutions..................................................................................................2

1.2.3 Mobile Money...................................................................................................................................2

1.2.4 Regulatory Environment...................................................................................................................2

1.2.5 Challenges.........................................................................................................................................2

1.3 Microfinance industry and Microfinance regulations in Tanzania..........................................................2

1.4 The project structure................................................................................................................................3

CHAPTER TWO...........................................................................................................................................4

PRESENTATION AND DISCUSSION OF FINDINGS..............................................................................4

2.0 Introduction..............................................................................................................................................4

2.1 Collection and Limitation of data collection...........................................................................................4

2.2 Status of Access Microfinance Bank in Tanzania...................................................................................4

2.2.1 Access Microfinance Bank services.................................................................................................4

2.2.1.1 Microloans...............................................................................................................................4

2.2.1.2 SME Loans..............................................................................................................................5

2.2.1.3 Savings Accounts.....................................................................................................................5

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 2.2.1.4 Insurance Products...................................................................................................................5

2.2.1.5 Money Transfer Services.........................................................................................................5

2.2.1.6 Financial Literacy Programs....................................................................................................5

2.2.1.7 Findings...................................................................................................................................5

2.2.2 Types of Customers Served........................................................................................................5

2.2.2.1 Micro-entrepreneurs.................................................................................................................5

2.2.2.2 Small and Medium-sized Enterprises (SMEs).........................................................................5

2.2.2.3 Low-income Households.........................................................................................................6

2.2.2.4 Women Entrepreneurs.............................................................................................................6

2.2.2.5 Youth Entrepreneurs................................................................................................................6

2.2.2.7 Findings...................................................................................................................................6

2.2.3 Common Lending Models and Types of Collaterals Used in AMBT..............................................6

2.2.3.1 Group Lending.........................................................................................................................6

2.2.3.2 Individual Lending...................................................................................................................6

2.2.3.3 Asset-based Lending................................................................................................................6

2.2.3.4 Findings...................................................................................................................................6

2.2.4 Innovative Services or Activities in AMBT.....................................................................................7

2.2.4.1 Digital Banking........................................................................................................................7

2.2.4.2 Agent Banking.........................................................................................................................7

2.2.4.3 Biometric Authentication.........................................................................................................7

2.2.4.4 Partnerships with NGOs..........................................................................................................7

2.2.4.5 Findings...................................................................................................................................7

2.2.5 Meaning of SMEs as per TZ Policy..................................................................................................7

2.2.6 The Way Access Microfinance Bank Support SMEs.......................................................................7

CHAPTER THREE.......................................................................................................................................9

CONCLUSION AND RECOMMENDATION.............................................................................................9

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3.0 Introduction..............................................................................................................................................9

3.1 Conclusion...............................................................................................................................................9

3.1.1 Effectiveness of Services..................................................................................................................9

3.1.2 Challenges.........................................................................................................................................9

3.1.3 Socio Economic Impact....................................................................................................................9

3.2 Recommendations..................................................................................................................................10

3.2.1 Expand Financial Literacy Programs..............................................................................................10

3.2.2 Reduce Operational Costs...............................................................................................................10

3.2.3 Develop Risk Mitigation Strategies................................................................................................10

3.2.4 Tailor Financial Products................................................................................................................10

3.2.6 Enhance Partnerships......................................................................................................................11

REFERENCE...............................................................................................................................................12

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 CHAPTER ONE

1.0 Introduction

This chapter explain about background of Access Microfinance Bank, background of the
banking industry, describe the financial institution operating in Tanzania and example of each
type and their characteristics also to know the status of Access Microfinance Bank.

1.1 Objective of project

The main purpose of conducted that project is to enhance financial inclusion by providing
accessible and affordable financial services to underserved and low-income populations,
particularly women and small business owners and to understand how microfinance banks is
operate their activities in Tanzania, features of microfinance banks and how they are differed to
from other institution in Tanzania. I was conduct project in Dodoma, because is capital city of
Tanzania and many branches of banks are settled. The reasons of choosing AMBT is because it
is popular in locally environmental and internationally, also this among of top three
Microfinance bank in Tanzania which perform well in their financial activities. But also, it takes
me a long time to complete my project work at the Institute of finance management due to the
different challenges and I have done this project work on the institute library. The project also
seeks to promote financial literacy and entrepreneurship, enabling beneficiaries to manage their
finances effectively, invest in their businesses, and achieve sustainable economic development.

1.2 Tanzanian financial sector

The Tanzanian financial sector has been experiencing steady growth and transformation, driven
by regulatory reforms, technological advancements, and an expanding economy. The Tanzanian
financial sector has experienced significant growth and transformation in recent years. The
following are the key aspects about Tanzania financial sector.

1.2.1 Banking Sector

The banking sector in Tanzania is dominated by a few large banks, with a growing number of
smaller banks and microfinance institutions. Access to banking services has improved, but there
are still challenges in reaching rural and underserved areas.

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1.2.2 Non-Banking Financial Institutions

Non-banking financial institutions, such as insurance companies and pension funds, play a
crucial role in the financial sector. The insurance industry has shown steady growth, driven by
increased awareness and regulatory reforms.

1.2.3 Mobile Money

Tanzania has been a pioneer in mobile money services, with a high level of adoption. Mobile
money has greatly improved financial inclusion, especially in rural areas, and has become a key
component of the financial ecosystem.

1.2.4 Regulatory Environment

The Bank of Tanzania (BOT) is the central regulatory authority overseeing the financial sector.
The government has implemented reforms to strengthen the regulatory framework and improve
financial stability.

1.2.5 Challenges

Despite progress, the financial sector still faces challenges such as limited access to credit, high
non-performing loans, and the need for further financial literacy and consumer protection
measures.

1.3 Microfinance industry and Microfinance regulations in Tanzania

The Microfinance industry in Tanzania plays a crucial role in providing financial services to
individuals and small businesses who have limited access to traditional banking services. This
sector includes a range of entities such as microfinance banks, non-governmental organizations
(NGOs), Savings and Credit Cooperative Organizations (SACCOs), and mobile money
providers. These institutions offer various financial products, including microloans, savings
accounts, insurance, and money transfer services, tailored to meet the needs of the underserved
population. Microfinance regulations in Tanzania are designed to ensure the stability,
transparency, and accountability of the sector. The Bank of Tanzania (BoT) is the primary
regulatory authority overseeing microfinance activities. The Microfinance Act of 2018 provides
a comprehensive legal framework for the sector, categorizing microfinance institutions into
different tiers based on their size and scope of operations. This legislation mandates registration

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and licensing, sets capital requirements, and imposes reporting obligations to ensure financial
health and consumer protection. Additionally, the regulations promote responsible lending
practices and aim to prevent over-indebtedness among borrowers. The regulatory environment is
evolving, with ongoing efforts to enhance supervision and support the growth of a robust and
sustainable microfinance industry in Tanzania.

1.4 The project structure

This project is organized in three chapters, chapter one is all about introduction, purpose or
objective of project, Tanzania financial sector analysis, and in Tanzania. secondly is chapter two
which discuss about presentation and discussion findings. The lastly is chapter three is all about
conclusion and recommendation of project work in Access Microfinance Bank.

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 CHAPTER TWO

PRESENTATION AND DISCUSSION OF FINDINGS

2.0 Introduction

This chapter discusses collection and limitation of data collection, Status of Access Microfinance
Bank in Tanzania, Access Microfinance Bank services, Types of Customers Served, Common
Lending Models and Types of Collaterals Used in AMBT, Innovative Services or Activities in
AMBT, Meaning of SMEs as per TZ Policy and the way Access Microfinance Bank Support
SMEs.

2.1 Collection and Limitation of data collection

The common method used in performing this project were, first by focusing on different group
discussion, reading documents written by AMBT and also by visiting AMBT first the challenge
of information may be out of date or inapplicable. The process of evaluating documents and
records can be time consuming, incomplete data collection method because the researcher has
less control over the results. Some documents may be not publicly available

2.2 Status of Access Microfinance Bank in Tanzania

The bank plays a crucial role in providing access to financial services for underserved
populations, including small-scale entrepreneurs and low-income individuals. Access
Microfinance Bank's status may be subject to change, so it's advisable to refer to the latest
reports or official sources for the most current information.

2.2.1 Access Microfinance Bank services

Access Microfinance Bank in Tanzania offers a range of financial services tailored to meet the
needs of small and medium-sized enterprises (SMEs), individual entrepreneurs, and low-income
households. The services which are offered include the following:

2.2.1.1 Microloans

Small loans designed to support small-scale businesses and entrepreneurs.

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2.2.1.2 SME Loans

Larger loans aimed at established small and medium-sized enterprises to help them grow.

2.2.1.3 Savings Accounts

Various types of savings accounts with different interest rates and terms to encourage saving
habits among clients.

2.2.1.4 Insurance Products

Microinsurance services covering health, life, and business risks.

2.2.1.5 Money Transfer Services

Domestic and international money transfer services to facilitate quick and reliable financial
transactions.

2.2.1.6 Financial Literacy Programs

Training and education programs to enhance clients' understanding of financial management and
planning.

2.2.1.7 Findings
The strength of the bank lies in its diverse range of services that cater to different financial needs,
promoting financial inclusion.

2.2.2 Types of Customers Served

The Access Microfinance bank serves a diverse customer base, including smallholder farmers,
women entrepreneurs, and small business owners in both rural and urban areas. These customers
often have limited access to traditional banking services.

2.2.2.1 Micro-entrepreneurs
Individuals running small businesses, such as vendors, artisans, and service providers.

2.2.2.2 Small and Medium-sized Enterprises (SMEs)

Businesses that have outgrown the micro stage and require more substantial financial support to
expand.

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2.2.2.3 Low-income Households
Families and individuals with limited income who need financial services for savings,
emergencies, and daily transactions.

2.2.2.4 Women Entrepreneurs

Special focus on women-led businesses to promote gender equality and economic empowerment.

2.2.2.5 Youth Entrepreneurs

Young people starting their businesses or seeking financial literacy and support

2.2.2.7 Findings
A significant strength is the Access Microfinance Bank have ability to reach a broad
demographic, particularly those who lack access to conventional banking services.

2.2.3 Common Lending Models and Types of Collaterals Used in AMBT

Access Microfinance Bank utilizes group lending models, individual lending, and village
banking. Collaterals used for securing loans may include group guarantees, household assets, and
income-generating equipment.

2.2.3.1 Group Lending

Loans provided to a group of borrowers who collectively guarantee each other's loans. This
model reduces risk and encourages mutual support.

2.2.3.2 Individual Lending

Direct loans to individuals based on their creditworthiness and business potential. This model
requires thorough risk assessment.

2.2.3.3 Asset-based Lending

Loans secured by collateral such as machinery, vehicles, or property. This model ensures lower
risk for the bank and higher loan amounts for the borrower.

2.2.3.4 Findings
The strength of these models in AMBT is flexibility and adaptability to different client needs,
although reliance on tangible collateral can be a barrier for some potential borrowers.

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2.2.4 Innovative Services or Activities in AMBT
The bank has introduced innovative mobile banking solutions, such as mobile money transfers
and payments, to enhance financial inclusion. Also, it offers financial literacy training and
business development services to its clients.

2.2.4.1 Digital Banking

Mobile and internet banking services that allow clients to conduct transactions, check balances,
and apply for loans remotely.

2.2.4.2 Agent Banking

Partnering with local shops and businesses to provide banking services in underserved areas,
increasing accessibility for clients.

2.2.4.3 Biometric Authentication

Using fingerprint and facial recognition technology to improve security and ease of access for
clients.

2.2.4.4 Partnerships with NGOs

Collaborating with non-governmental organizations to provide comprehensive support, including
business training and market linkages

2.2.4.5 Findings
The Innovative use of technology and educational initiatives is a major strength, significantly
improving financial inclusion and customer satisfaction.

2.2.5 Meaning of SMEs as per TZ Policy

In Tanzania’s policy context, SMEs refer to Small and Medium Enterprises that play a
significant role in driving economic growth and job creation. The Tanzanian government
recognizes SMEs as vital contributors to the country’s economy and has implemented policies to
support their development. The specific criteria are outlined in the government's policy to
categorize businesses as SMEs.

2.2.6 The Way Access Microfinance Bank Support SMEs

Access Microfinance Bank support SMEs by providing them with access to finance through
tailored loan products designed for small businesses’ needs. These loans help SMEs invest in

7
their operations, expand their businesses, purchase equipment or inventory, hire more
employees, and ultimately grow sustainably. Also Access Microfinance Bank, offer financial
literacy training and business development support to help SMEs improve their management
skills and increase their chances of success.

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 CHAPTER THREE

CONCLUSION AND RECOMMENDATION

3.0 Introduction
This chapter is all about conclusion and recommendation of project work of Access
Microfinance Bank. The conclusion explain about how Access Microfinance Bank provide
services as microfinance institution in Tanzania.

3.1 Conclusion
This project aimed to assess the performance, challenges, and impact of Access Microfinance
Bank in Tanzania. The primary objectives were to evaluate the effectiveness of the bank's
microfinance services, understand the challenges faced by both the institution and its clients, and
determine the overall socio-economic impact on the local community. The analysis revealed that
Access Microfinance Bank has significantly contributed to financial inclusion in Tanzania,
especially among low-income individuals and small businesses. The bank's microfinance
services have enabled many clients to start or expand their businesses, improve their standard of
living, and enhance their financial literacy. Key findings include the following

3.1.1 Effectiveness of Services

The bank's diverse range of financial products, including loans, savings accounts, and insurance
services, effectively meet the varied needs of its clients. The accessibility and tailored nature of
these products have been crucial in supporting entrepreneurship and economic growth.

3.1.2 Challenges
Despite the positive impact, the bank faces several challenges. High operational costs, limited
access to remote areas, and the risk of loan defaults are significant concerns. Clients also face
challenges such as high-interest rates and limited financial literacy, which can impede their
ability to maximize the benefits of the services offered.

3.1.3 Socio Economic Impact

The socio-economic impact of the bank's services is evident in the improved income levels and
business growth reported by clients. Many clients have experienced enhanced economic stability
and better access to essential services such as education and healthcare. Access Microfinance
Bank plays a vital role in promoting financial inclusion and economic development in Tanzania.

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The institution has made considerable strides in addressing the financial needs of underserved
populations, though there are areas that require further improvement to enhance its effectiveness
and sustainability.

3.2 Recommendations
Microfinance banks is globally acknowledged and accredited for its role in fighting poverty as
evidenced by many countries that use it especial in Tanzania. In recognition of the potential of
the microfinance sub-sector in poverty reduction and economic growth, the Government of
Tanzania formulated and adopted the first National Microfinance Policy in 2000 (NMP, 2000).
Based on the observations and analysis, the following recommendations are proposed to enhance
the performance and impact of Access Microfinance Bank

3.2.1 Expand Financial Literacy Programs

To address the issue of limited financial literacy among clients, the bank should invest in
comprehensive financial education programs. These programs should focus on improving clients'
understanding of financial management, debt handling, and the benefits of various financial
products.

3.2.2 Reduce Operational Costs

The Access Microfinance Bank should explore strategies to reduce operational costs, such as
leveraging technology for digital banking services. Implementing mobile banking and online
platforms can increase efficiency and reach clients in remote areas without the need for physical
branches.

3.2.3 Develop Risk Mitigation Strategies

To mitigate the risk of loan defaults, the bank should enhance its credit assessment processes and
offer financial counseling to clients. Developing flexible loan repayment plans and providing
support to struggling businesses can also help reduce default rates.

3.2.4 Tailor Financial Products

Access Microfinance Bank should continuously assess and adapt its financial products to meet
the evolving needs of its clients. Offering more flexible loan terms, competitive interest rates,
and innovative savings schemes can attract and retain more clients.

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3.2.6 Enhance Partnerships
Collaborating with other financial institutions, non-governmental organizations, and government
agencies can provide additional resources and support. These partnerships can help expand the
bank's reach and impact.

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 REFERENCE

Elinaza, Abduel (12 April 2014). "Tanzania: Access bank Upbeat About Future Despite
Challenges". Tanzania Daily News via AllAfrica.com. Dar es Salaam. Retrieved 18 July 2018.

Access Bank Tanzania (25 July 2017). "Financial Statements for the Quarter Ended 30 June
2017" (PDF). Dar es Salaam: Access Bank Tanzania. Archived from the original (PDF) on 7
May 2018. Retrieved 6 May 2017.

Macha, J. J. (2023). Participation of Civil Servants in Dar es Salaam Stock Exchange,

Tanzania. Journal of Business and Social Review in Emerging Economies, 9(2), 101-114

Mandari, H. E., Koloseni, D. N., & Macha, J. (2020). Continuance Usage of Mobile Banking
Services Among Small and Medium Enterprises (SMEs) in Tanzania. International Journal of
ICT Research in Africa and the Middle East (IJICTRAME), 9(1), 50-66.

Halili Letea, and Gladys Mbwiga (1 August 2018). "Tanzania banks cut jobs in face of new
realities". The Citizen (Tanzania). Dar es Salaam. Retrieved 5 August 2018.

Mteleke, Salum (6 January 2014). "Access bank Tanzania Records US$100 Million Assets".
Tanzania Business Times. Dar es Salaam. Retrieved 18 July 2018.

Bank of Tanzania (13 April 2016). "Directory of Banks Operating in Tanzania". Bank of
Tanzania. Retrieved 6 May 2018.

TBUK (13 April 2016). "About Triodos: Access Microfinance Bank Tanzania". Triodos Bank
United Kingdom (TBUK). Retrieved 13 April 2016.

MMO (31 December 2014). "Access Bank Tanzania: Profile". Mixmarket.org (MMO).
Retrieved 13 April 2016.

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