Tanzanian women’s small businesses are lifting them out of poverty
Despite its growing economy many Tanzanians remain in extreme poverty. Women and the youth are particularly vulnerable. The social insurance programme TASAF aims to bring people – particularly women – together for their economic empowerment. In Dar es Salaam two groups of women have bundled their energy and created sustainable small businesses. As a result, they have escaped extreme poverty and are able to stand on their own two feet.
Magomeni Ward in the north of Dar es Salaam is buzzing with activity. Small businesses and shops line the neighbourhood’s main roads. However, many of these small business owners struggle to make ends meet. The area is home to many people that are still living in extreme poverty. TASAF is a social protection programme supported by the Swiss Agency for Development and Cooperation (SDC). In communities like Magomeni, the programme not only supports vulnerable families through cash transfers but also encourages beneficiaries’ economic activity.
In Dar es Salaam, for example, the SDC has supported the Upendo and the Samzija groups – groups of women who have bundled their energy and resources for their own economic empowerment. Together they make products, run small businesses and lend each other money.
The Upendo and Samzija groups
The stories of the Upendo and Samzija groups started in 2021 in different parts of Dar es Salaam. The Upendo group is made up of women from the city’s Magomeni Ward, whilst the members of the Samzija group live in the Bunju Ward. The Upendo group is currently running an event decoration business. In addition, it rents out event equipment, supplies, and two motorbikes and also sells various products, such as a chili sauce, nuts and crisps. The women in the Samzija group are active in agriculture but also produce garments and sell stones that can be used for construction.
While the women work in a broad range of sectors and use different methods (Samzija works on a more individual basis whereas Upendo acts as a collective), the idea behind their groups remains the same: supporting each other in the establishment of sustainable small businesses.
Solidarity between group members paving the way
And to this point they have been fairly successful. Since its formation in 2021, the Samzija group has saved around 2’000’000 TZS (about CHF 625) of which it has been able to lend 521’000 TZS (about CHF 160) to its members. For the women in the group, who are among Tanzania’s extreme poor, these loans can already go a very long way. The Upendo group has been able to use the saved money to secure 10’000’000 TZS (about CHF 3’130) in zero-interest loans from the local authority. Loans directly from the group or from external sources have enabled the members to grow their businesses.
This has in turn paved the way for many of the women to graduate from the programme. Having established their livelihoods, they no longer need to rely on TASAF payments and are instead able to stand on their own two feet. TASAF’s livelihood enhancement programme demonstrates the benefits of poverty reduction through economic activity.
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