Impact of information and communication technology (ICT) adoption on microfinance institutions (MFIs): the case of PRIDE Tanzania

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University of Dar es Salaam
The main objective of the case study was to explore and gain an understanding of the impact of ICT adoption in the Microfinance industry in Tanzania. The study specifically addresses the following issues; first, the extent of ICT investment in PRIDE Tanzania and level of ICT competence to staff, second, the study assessed whether the ICT adoption has helped the organization to improve organizational performance and quality of services, lastly, the study tried to expose major constraints associated with effective implementation and utilization of ICT. Respondents were drawn from PRIDE Tanzania staff in six different branches. This study used purposive sampling to obtain respondents from total population. Questionnaires were adopted as the main tool of collecting data. Variables and hypotheses were identified and developed to obtain statistical relationships. Findings revealed that ICT adoption have helped PRIDE Tanzania to reduce some of operating costs. Offer more products, increase productivity, monitor loan repayment and serve clients timely. The study also reveals management attitude towards ICT investment and utilization. ICT investment only refers to the acquisitions of ICT futilities, undermining the aspect of ICT training to ICT users (staff). The extent of ICT utilization is solely automation, speeding up the processes rather than making use ICT options to reorganize business operations. This study concludes that for the ICT to have substantial impact, MFIs should stop using technology to mechanize old ways of doing businesses. The study argues that MFIs to utilize ICT to radically redesign business processes in order to achieve substantial impact of ICT investment.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG178.33.T34J67)
Microfinance, Microfinance Institutions, Information technology, Promotion of rural initiatives and development enterprises, Tanzania
Joseph, R. (2006) Impact of information and communication technology (ICT) adoption on microfinance institutions (MFIs): the case of PRIDE Tanzania, Master dissertation, University of Dar es Salaam. Dar es Salaam.