The Role Of MFIs In The Empowerment Of Rural Women In Tanzania: A Case Of FAWETA, EOTF And AIDOS In Ngorongoro District

ABSTRACT

The study is a critical examination of the role of Micro Finance Institutions in the empowerment of the rural women in Tanzania‟s economic development. The general objective of the study was to assess and evaluate the contribution of microfinance institutions to the empowerment of women with particular emphasis on women in the rural areas of Ngorongoro District. The specific objectives focused on the types of business activities, challenges faced by rural women, impact of MFI services and constraints of MFIs, and solutions to overcome them. Both primary and secondary data were used in gathering information for the study. The secondary data came as a review of documented materials, while the primary data was obtained with the help of interview and questionnaires which were administered to the women with the help of the researcher. A total of 50 questionnaires were distributed and administered. Simple statistical techniques such as descriptive statistics including tables, graphical presentations such as line graph and bars were used in analyzing and summarizing the data. From the findings of this study, it was realized that the loans offered by MFIs have significant impact on the empowerment of rural women. Interestingly, this study found that most women in this association experienced increased income and therefore improved their economic status, political and social conditions after receiving the loans. They also expressed concern about high interest rate that is charged on the loan. In addition to that the respondent were also worried about application procedures, short repayment period and long training session before disbursement of loans. Therefore, the study concludes that Microfinance has contributed not only in alleviating poverty of the poor people, but also in empowering the rural communities. Finally, the study recommended on the feasible supports to MIFs from both the Government and Non Government Organisations for more rural women empowerment.