2017 Rethinking Financial Services Taking Stock of our
- Slides: 6
2017
Rethinking Financial Services Taking Stock of our achievements and forging the way forward Investments
Capital Markets are still lagging behind Uptake of Formal Financial Services 60% 50% Mobile money services 17% 14% Commercial bank services 15% 13% Insurance services 4% 3% Pension services 2% 3% SACCOS 0% 0% 2017 2013 16% 12% Savings Group Informal Moneylender 7% 2% MFI/microlender services Capital markets Uptake of Informal Financial Service 4% 3% Shop & supply chain credit 2017 12% 25% 2013
43% of adult Tanzanians saved in the past 12 months Living expenses CASHFLOW SMOOTHING 82% Asset Building Productive - 9% Investment Smoothing - 9% Cashflow - 82% Why are they saving? Base=only those who save 45% An emergency other than medical 18% ASSET BUILDING 9% PRODUCTIVE INVESTMENT 9% Medical expenses either planned or emergency Funeral expenses when needed 11% 2% Education or school fees 6% Farming expenses 3% Business expenses 2% Starting or expanding business 4% Buying or building a house to live in 4% Buying land 2% Buying livestock 2% Retirement or old age 1%
44% of adult Tanzanians borrowed in the last 12 months Medical expenses/medical emergencies ASSET BUILDING 7% INVESTMENT 19% SMOOTHING 74% Asset Building Productive - 7% PRODUCTIVE investmet -Smoothing 19% CASHFLOW Cashflow - 74% Why do they borrow? Base=only those who borrow 24% Living expenses 23% An emergency other than medical 14% Education or school fees 7% Funeral expenses Other cash flow regulating expenses 4% 2% Starting or expanding your business 10% Farming expenses Business expenses 8% 1% Buying, building, improving a house to live in Buying land (farm or living) Buying livestock 4% 2% 1% 59% of those borrowing borrowed more than once in the past 12 month
Customer base is a key challenge What are the biggest challenges of growing your business? Client/customer base too small/narrow 35% Access to credit/finance 13% Other, specify 13% Don’t get fair prices 13% Access to natural capital – land, water 10% Marketing 6% Access to infrastructure 4% Access to transport 2% Lack of storage facilities/warehouses 2% Access to market information 1%