Mkoyi, who is in his early 40s, is married and has two children who are still going to school. He has been running a butcher shop since 2000. He works from 6:00 am to 9:00 pm daily and is able to make a good monthly profit. This will be Mkoyi's sixth loan from Tujijenge Tanzania. He used the previous loans to open another butcher shop in a different place. He used his profits to buy a TV set, a sofa set and a fridge, and to pay school fees and to cover household expenses. He has repaid all his loans successfully. He will use this loan to buy more beef, chicken and fish to meet his customers' demand. He dreams of opening another butcher shop in a different place and of renovating all his shops to good standards. Mkoyi will share this loan with his loan group, "Mshikamano," consisting of sixteen members. The members will hold each other accountable for paying back the loan.
About Tujijenge Tanzania
This loan is administered by Tujijenge Tanzania, which was founded in 2006. It has operations in Dar es Salaam, the coastal region, and the Lake Victoria region. The organization aims to reach out to micro entrepreneurs and provide them with financial and social intermediation services because capital is one of the major barriers to development and success for micro-enterprise initiatives in Tanzania.
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.