Micro-Credit and Women Empowerment; the Case of Selected MFIs in Dar es Salaam, Tanzania.

The objective of this study was to assess the factors hindering empowerment of female clients who have graduated to the higher levels of loan. Data was collected through a survey of 50 clients in Kinondoni District and an in-depth interview of 3 credit officers one from Rural Initiatives Development Enterprises (PRIDE-Tanzania), Foundation for International Community Assistance (FINCA) and from Small Industries Development Organization (SIDO). Data were analysed through Chi-square test, frequencies, percentage and cross-tabulations. Finding revealed that in some aspects credit has been effective in empowering women economically and socially. However, low confidence, social cultural roles, low level of education; high interest rates and limited access to Information Communication Technology (ICT) are hindering effectiveness of micro-credit in this regard. The study recommends continuous education of women themselves and society on the importance of women economic empowerment. These efforts should incorporate Microfinance Institutions (MFIs) services adjustments to reflect the present women social and economic situation, as well as continuous mobilization from agencies supporting women empowerment. Moreover the design of microfinance should focus on gender very strategically so that women benefit. MfIs should work with policy makers so that social and political empowerment can be increased and ultimately reduce gender imbalances in various aspects such as to assets.