Browsing by Author "Mshana, Hudson Alfred"
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ItemEvaluation of microcredit Solidarity Group Lending : the case of Dar-Es-Salaam Community Bank Limited (DCB)(Southern New Hampshire University, 2005) Mshana, Hudson Alfred; Arrington, Clark R.This study analyzes the social-economic impacts, effectiveness and efficiency of microcredit given to SGL operators living in Dar- es -Salaam region that are offered loans by the DCB Limited. The study provides empirical primary based information on the social-economic impact of microcredit to the economically active poor (EAP) with a range of income generating activities and constraints advanced by the clients with a view to alleviating poverty. This evaluation clearly states the problem by which the study is set to address within the community through the DCB microcredit to its clientele base via the SGL methodology. An overview of study findings, reveal that during the three years of operation, the bank recorded efficiency and effectiveness in microcredit provisions and that the clients continue to register their achievement towards the bank services and keep on increasing. Positive impacts of the microcredit benefits have been appreciated through various ways such clients and their families have benefited along with its trickle down effects recorded from time to time. Significant study findings revealed, interalia, the following: -72% of the clients are satisfied with the services with majority being the middle aged micro entrepreneurs forming about 61%. -About 60% of the clients managed to use part of the credit accruals to fund education for their children. -87% have greatly improved and expanded their business opportunities in various dimensions. -55% have now, through the bank, coming up and inculcated the culture of saving. -The study further revealed that women empowerment is at the forefront as it records about 66% of the women who have all the way been encouraged to join and benefit from the scheme. -Apart from the scheme benefiting the targeted population, the bank also created 70 full time bank positions. However, problems observed from the study that the clients do face include: Complaints on high interest rate, high commitment fee, short weekly, repayment and grace periods, small starting loan and lack of proper education on entrepreneurial skills in business management, markets, legal and regulatory framework, licensing and tax issues. This evaluation study suggests ways through which the presented problems could be averted hence provide more microcredit and consequently have greater outreach and sustainability. Some of the problems advanced would need thorough education to clear most of the clients' doubts and simply keep the beneficiaries on the right track. A close observation revealed that the client, group leaders and even bank officers miss important regular training skills in their areas of operation. Proper education is among the suggested ways to mitigate most of the problems gathered from the study. A comprehensive training manual is strongly herewith recommended for implementation, as this is a key and road map towards the workable solution. The set up of this project paper is contained in Five Chapters. -Chapter one is an introduction giving a historical background of the DCB and the S G L clients along with their profiles, the evaluation assignment and its setting. -A detailed literature review and conceptual framework providing theoretical and empirical reviews are given in Chapter Two. -Chapter Three dwells on research methodology detailing sampling techniques, data type, data collection methods, data coding, data management, data analysis and presentation. -Results presentation, observations, findings, discussions, recommendations and conclusions are provided in Chapter Four. -Lastly, Chapter Five is on implementation of the assignment. (Author abstract)