Social Issue

Tanzania’s progress from being considered a low-income country to a lower middle-income country, with a Gross National Income per capita of $1,200, is significant. However, despite this progress, in 2022, almost 26 million people were still living in extreme poverty. Tanzania’s microfinance sector has witnessed remarkable growth in recent years, driven by increasing demand for microloans and the expansion of microfinance institutions. The industry has played a pivotal role in promoting entrepreneurship, alleviating poverty, and fostering economic resilience.

Our Response

Netri has provided a loan to ASA Tanzania, non-deposit taking microfinance institution, providing small, socially responsible loans for income-generating purposes to low-income, predominantly female entrepreneurs.  ASA Tanzania operates a cost-efficient, standardized and sustainable model, which is used across all ASA microfinance operations in the world, but adjusted for local economic and cultural circumstances. Their lending approach is based on individual lending via client groups to support women entrepreneurs. 

Netri has provided a  local currency loan to reduce the operational risk of the institution having to take on a dollar loan.

Expected Social Impact

In terms of Netri’s attribution, with this loan, it is estimated that ASA T will be able to provide more than 7,200 micro loans to low-income women with the aim of increasing their income and improving their well-being and that of their families.