The United States Agency for International Development (USAID), a US government agency that provides international economic and humanitarian assistance, has announced its intention to issue a USD 10 million bond to fund Promotion of Rural Initiative and Development Enterprises Limited (PRIDE Tanzania), a microfinance institution established in 1994, to make loans to women in Tanzania. Mr Alfonso Lenhardt, the US ambassador to Tanzania, said, “I have observed that when women are given loans they use the money wisely, have the perfect business spirit, support the community and finally repay the funds to the bank.”
PRIDE Tanzania, as of 2009, reported total assets of USD 36.8 million, a gross loan portfolio of USD 27.9 million and a return on assets of 1.93 percent.
By Conner Brannen, Research Assistant
About PRIDE Tanzania:
Promotion of Rural Initiative and Development Enterprises Limited (PRIDE Tanzania) is a microfinance institution that provides credit to small and micro entrepreneurs in Tanzania. Founded in January 1994, PRIDE Tanzania, as of 2009, reported total assets of USD 36.8 million, a gross loan portfolio of USD 27.9 million and a return on assets of 1.93 percent. PRIDE has been primarily funded by NORAD, the Norwegian Agency for Development Cooperation. Through a mix of loans and grants, NORAD has committed USD 7.3 million to PRIDE. The organization uses a “modified Grameen” methodology where borrowers form groups to guarantee each group member’s loan. Loans range from TZS 50,000 (USD 36) to TZS 100 million (USD 72,706).
About the United States Agency for International Development (USAID):
The United States Agency for International Development (USAID) is a US government agency that provides international economic and humanitarian assistance. It focuses on areas such as economic growth, agriculture, trade, global health, democracy, conflict prevention and humanitarian assistance. Under the Development Credit Authority (DCA), it provides partial credit guarantees that cover up to 50 percent of defaults on loans made by private financial institutions to institutions that lend to underserved borrowers.
Sources and Additional Resources:
AllAfrica.com: “U.S. to Give Pride Tanzania U.S.$10 Million,” July 2, 2010: http://allafrica.com/stories/201007050996.html
MicroCapital Universe Profile: PRIDE Tanzania: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=pride
MicroCapital Universe Profile: United States Agency for International Development (USAID): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+States+Agency+for+International+Development+%28USAID%29
MICROCAPITAL BRIEF: MFTransparency and The MasterCard Foundation Launch Enabling APR & EIR Program to Promote Transparency in Microfinance in Eight Sub-Saharan African Countries, June 10, 2010: https://www.microcapital.org/microcapital-brief-mftransparency-and-the-mastercard-foundation-launch-enabling-apr-eir-program-to-promote-transparency-in-microfinance-in-eight-sub-saharan-african-countries/
MICROCAPITAL BRIEF: Microfinance Project for Low-Income Housing Launched in Tanzania By The Women Advancement Trust (WAT) ? Human Settlements Trust, The Financial Sector Deepening Trust (FSDT) and Rooftops Canada, June 4, 2010: https://www.microcapital.org/microcapital-brief-microfinance-project-for-low-income-housing-launched-in-tanzania-by-the-women-advancement-trust-wat-human-settlements-trust-the-financial-sector-deepening-trust-fsdt-and-roo/
MICROCAPITAL BRIEF: responsAbility Mikrofinanz-Fonds and responsAbility Global Microfinance Fund Invest Total of $2m in Tanzanian Microfinance Bank PRIDE, May 14, 2010: https://www.microcapital.org/microcapital-brief-responsability-mikrofinanz-fonds-and-responsability-global-microfinance-fund-invest-total-of-2m-in-tanzanian-microfinance-bank-pride/
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