Share the story of the founder and what inspired the founder to start this project
I have been working as a Credit Officer for 7 years, first with Microfinance bank and later with a Commercial bank. I have met many people who would like to access financial services but only few qualify. The major constraint has been informality of their businesses, the lack of information on debt capacity and credit worth ness especially the rural poor, which along with low-income and lack of tangible assets to offer against loans, has made financial institutions oblivious to their needs.
This is why I saw the potential for development of a product specifically targeting towards asset finance for the micro and small enterprise sector in rural Tanzania. The idea came after in depth interview with entrepreneurs to examine their needs and the challenges they face in growing and expending their businesses. The interview revealed that there is there is large un met demand for leasing among micro and small enterprise seeking short and medium term financing ranging from approximately US$ 120-$8,500. Majority of these entrepreneurs operate in trade and service sector requiring financing for lower cost assets such as sewing machines, refrigerators, freezers, carpentry tools etc; whilst those in the transport, agriculture, health and education sectors are small to medium sized and use assets with greater financing requirements.