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Pride Tanzania

Knut Frigaard, an Investment Director at NMI, talks about meeting a microfinance client in Tanzania
In late 2014, NMI performed a due diligence visit with Pride Tanzania, a NGO banking operations lending to the poor across Tanzania. During our stay, we visited several clients. Below you will find the story about Fridah Jack, a single mother with a touching life history. 

Fridah Jack is a mother of five and single parent currently servicing her seventh loan from Pride Tanzania for a total of Tanzanian Shillings (Tshs) 7,000,000 (approx. USD 3,850). Frida started her business relations with Pride in 2004 and is now in her 11th year of her relationship with the bank. 

Fridah was once married to a retired police officer who was not kind to his family. The man used to cane his wife and children for no reason; and the family lived in a constant state of fear. In 2000, when the police officer received his retirement benefits, he left his family behind and he took all the money with him.

Fridah had the courage to start business ventures in order to support her family of five children who were at school at that time. Initially, she faced a hard time to start and grow a business without the required start-up capital. She tried approaching commercial banks in order to access a loan, but without any luck as she did not have collateral. In 2004, Frida joined PRIDE Tanzania-Arusha branch. Her business started to grow and diversify as she accessed loans from PRIDE and graduated from one loan level to another. In 2012, she graduated from the initial group loan methodology and joined premium group loan level. She just received a loan of Tshs 7,000,000 in late 2014.

Frida is now happy, as she is financially independent. Becoming a client of PRIDE TANZANIA was a very successful opportunity as PRIDE enabled her to create her own success, which allowed her to take her children through secondary school studies and three of them, Adellah, Perila and Ezekiel to college level. She also managed to renovate her house, and to connect to electricity and water. Furthermore, her capital grew to the extent that she changed her business from traditional small restaurant to grocery and to a medium-sized shop selling of electronic equipment. She also has plans to expand her electronics business by opening a second outlet. Lastly, the business growth has allowed Fridah to help support a larger part of her family as well as provide local employment. In fact, some of her children are already assisting in the operation of her shop. 

“Kiukweli PRIDE ni Taasisi iliyobadilisha maisha yangu” – she said,” truly PRIDE has changed my life positively”.

Lending to clients like Fridah is not possible if banking operations like Pride Tanzania are not able to fund their operations accordingly. Funds like NMI contribute to this purpose.

Knut Frigaard
Investment Director, NMI AS
 
Nordic Microfinance Initiative AS

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