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How Savings-Led Microfinance Has Improved Chickpea Marketing in the Lake Zone of Tanzania   Image

Promoting Inclusive Markets and Financial Systems

How Savings-Led Microfinance Has Improved Chickpea Marketing in the Lake Zone of Tanzania

How Savings-Led Microfinance Has Improved Chickpea Marketing in the Lake Zone of Tanzania

Summary

Organizing farmers into groups allows them to bring together their production to create sufficient volume of product for interested buyers. Though effective, implementing this approach has several challenges. One challenge is creating disciplined groups that are able to maintain their cohesiveness when members are faced with immediate household needs following harvest, and need to sell their crop to generate income. Another challenge is determining how to provide access to loans that facilitate the operations of the farmer groups in buying from their members and selling to traders. This paper looks at how savings-led microfinance has helped smallholder producers in Tanzania successfully address these challenges. The following were some of the findings captured during a field study which took place in June 2009.

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