Analysis of problems causing low level of MFls outreach in Tanzania: the case of PRIDE (T)

The main objective of this study was to explore and understand the problems causing low level of MFls outreach in Tanzania. Questionnaires and interview were used to collect data from staffs and clients of MFls. PRIED (T) was visited whereby the findings revealed that, competition from other loan providers is one of the problem facing MFls. Reliance on one product makes customers exit to find where they can get various products. Clients defaults and current city operation where many small business are destroyed and lack of alternative areas which are easily accessed to customers to market their products, lack of areas of establishing new branches, clients exit, lack of experienced staffs and high interest rates charged by Commercial Banks where MFls used to borrow money. This causes cost of operation of MFls to be higher hence charging high interest rate to their clients (small traders). The conclusion reached was that MFls are significant in poverty reduction and improving standard of living. Measure should be taken by MFls players to ensure that various products will be offered in these institution to attract and avoid clients, dropout, MFls should find a way to reduce the interest rate charged to their clients, providing training to their credit officers on customer care lastly to enhance sustainability of entrepreneurial skills, Government should ensure there is conducive environment for small traders to survive in the business rather than chasing them and destroying their business whle they have borrowed money from MFls. This leads to failure and low outreach of MFls services because of increasing number of defaulters.