A TOTAL of 2.2bn/- has been invested in the country through the banking on change programme among communities which were not linked to formal banking services in the last four years.
Plan International Tanzania's Microfinance Advisor, Stella Tungaraza has said that between 2009 and 2012 , the amount was invested in rural areas through the programme whereby the cost per beneficiary in Phase 1 was 37,500/-.
She said the total number of beneficiaries stands at 63,000, with 2,400 Village Savings and Loans Associations groups (VSLAs) formed out of which 153 were linked to formal banking services.
"For Phase two the total investment amount in Tanzania between 2013 and 2015 is 2.6bn/- with the cost per beneficiary being at 62,500/-.
"Banking on change has particularly reached out to women making up 80 per cent of the group members and successfully reached many unschooled people, making financial services accessible to all and has linked over six hundred village savings groups to formal banking products such as tailored savings accounts in Ghana, Kenya, Tanzania and Uganda and an overdraft product in Uganda," she said.
Explaining more about the banking on Change programme, Ms Tungaraza said that since its launch in 2009, the initiative has benefited over 513,000 poor men and women across eleven countries by giving them access to basic financial services, exceeding its original target of 383,000 by 34 percent.
She said it has also supported the formation of 25,000 village savings groups (against a target of 16,000), provided all groups with basic financial literacy and money management training to develop a culture of savings and generated over USD 6.5 million in savings, she said.
Ms Tungaraza further said that a total of £10 million has been earmarked for phase 2 which covers the period between 2013 and 2015, in which banking on change targets to reach 330,000 beneficiaries of which 75 per cent will be under 35 years of age.
According to her, the project will support the establishment of 10,000 youth savings groups and 41,000 small income generating activities that will be sustained. It also aims to link 5,000 informal savings groups to formal financial services including branches of Barclays where possible and advocate for the adoption of the model of linking poor people to the formal banking sector.
She added that banking on change has particularly reached out to women making up 80 per cent of the group members and successfully reaching many unschooled persons, making financial services accessible to all.
It has also supported the formation of 25,000 village savings groups (against a target of 16,000), provided all groups with basic financial literacy and money management training to develop a culture of savings and generated over USD 6.5m in savings.