Outreach and impacts of microfinance institutions in Tanzania: a case study of Finca

This study was conducted to examine the outreach and impacts of micro-financial institution in Tanzania, taking FINCA as a case study. The study was guided by the following research objectives: to examine the nature of financial services offered by micro finance institutions to the enterprises; to examine the nature of financial services offered by micro financial institutions to the enterprises, to establish the contribution of micro finance funding to the economic activities of the beneficiaries, to establish the challenges facing the outreach of micro financial services offered by financial institutions to targeted enterprises . And lastly to design appropriate strategies that will increase the outreach of micro finance institutions so as to enhance economic development of the enterprise. The researcher used both primary and secondary data. The primary data was got from FINCA clients and from management. The information was obtained by use of self-administered questionnaires and interviews. Secondary data was obtained from published materials, which included journals, textbooks magazines, internal reports and newspapers. The study came up with the several conclusions, notable among them is that FINCA offers several services to clients; there are several indicators of growth in economic activities; FINCA has positive contribution on economic growth of the enterprises to cite a few. The study yielded the following recommendations; lower interest rates, lengthen the repayment period, sensitization of client, expanding the product portfolios, emphasizing enterprises banking, evaluation of project proposals to cite a few.