Last updated August 11, 2013

Partner Description:

Tanzania Human Development Foundation (TAHUDE) is a non-profit organization that aims to tap into the different talents of men and women in Tanzania to effect positive changes in the lives of other people. Founded in 2010, its current activities are aimed to promote renewable energy distribution such as solar power and biogas, community development, women empowerment, microfinance, children education, environmental conservation and more.

Non-grid energy solutions force Tanzanians to spend over $500 million per year on hazardous kerosene for lighting. Households spend approximately ten percent of their incomes on basic energy services - a substantial amount for many low-income Tanzanians. The overwhelming dependence on biomass for meeting basic cooking and heating needs is a major cause of poverty in Tanzania. It also causes deforestation and soil degradation due to charcoal production and the use of woodfuels.

TAHUDE’s clients are solely depending on wood and charcoal for cooking, kerosene for lighting, etc. That is why the organization is promoting green energy use to reduce deforestation, carbon dioxide emission and more.

After two years of operating its loan program, TAHUDE realized that clients are not able to finance some of their most desired projects, in particular, the installation of biogas systems, due to the inability to raise sufficient savings. The cost of one biogas system with the Government subsidy is about $625. Kiva’s flexible loan terms will allow clients to borrow the money they need to build biogas systems to enhance their quality of life and provide clean energy for their families.

A unique lending approach:

TAHUDE works with people in rural areas because they are generally neglected by traditional financial institutions. These are the marginalized majority. They have some resources like farms and livestock, but they cannot afford to accumulate a reasonable amount of capital for significant investment. The organization provides loans for agriculture, health and consumption depending on clients’ needs.

At present, one of the most successful TAHUDE endeavors is its Microfinance Program. It provides small loans of approximately US$800 and up to groups of people, the majority of whom are women. The loans are also given to individuals, provided that they fulfill the loan agreement: they have to sign the agreement form and be guaranteed by four other members in a group of up to 30 people.

Each group of 30 borrowers has a leadership team: chairperson, secretary, and treasurer. Clients have to register with TAHUDE Foundation Microcredit and raise savings that will enable them to borrow three times the amount they saved.

In addition, TAHUDE Foundation has been working with Primary Schools for Africa (a Canadian NGO) to support early education in Karatu, Tanzania. Within this partnership, the organization receives computer donations from Korea and distributes them to children at schools. It also works with Kiboko Impex Limited to distribute affordable solar systems to rural communities in Karatu. The Kiboko Impex Company gives flexible solar loans with long repayment terms.

TAHUDE joined Kiva through ourExperimental Partnership Program, and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 22, 2013 Oct 12, 2005
Total Loans $80,625 $582,899,350
Amount of raised Inactive loans $0 $412,675
Number of raised Inactive loans 0 393
Amount of Paying Back Loans $80,625 $117,043,450
Number of Paying Back Loans 32 123,498
Amount of Ended Loans $0 $465,443,225
Number of Ended Loans 0 591,918
Delinquency Rate 0.00% 3.74%
Amount in Arrears $0 $2,841,615
Outstanding Portfolio $45,625 $76,065,484
Number of loanDelinquent 0 11,732
Default Rate 0.00% 1.15%
Amount of Ended Loans Defaulted $0 $5,334,744
Amount of Ended Loans $0 $465,443,225
Number of Ended Loans Defaulted 0 16,795
Currency Exchange Loss Rate 0.00% 0.08%
Amount of Currency Exchange Loss $0 $480,684
Refund Rate 0.00% 0.77%
Amount of Refunded Loans $0 $4,494,225
Number of Refunded Loans 0 5,037

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 30.30% 74.17%
Average Loan Size $2,520 $418
Average Individual Loan Size $2,520 $656
Average Group Loan Size $0 $1,827
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $1,700 $3,433
Average Loan Size / GDP per capita (PPP) 148.21% 12.19%
Average Time to Fund a Loan 3.3 days 5.56 days
Average Dollars Raised Per Day Per Loan $762.94 $75.30
  Average Loan Term 12.48 months 10.29 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1 291,503
  Journaling Rate 0.00% 42.36%
  Average Number of Comments Per Journal 0.00 0.08
  Average Number of Recommendations Per Journal 0.00 1.90

Borrowing Cost Comparison (based on 2009 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 42% APR 21.00% PY 33.64% PY
  Profitability (return on assets) N/A 0.2% -1.40%
  Average Loan Size (% of per capita income) N/A 134.00% 41.35%

Country Fast Facts

Field Partner Staff

Askwar Hilonga