PRESS RELEASE

PRESS RELEASE

(27/07/2010)

MERGER BETWEEN TAMFI AND THE COALITION OF MICROFINANCE

1. Background:
In the 2009 the Board of the Tanzania Association of Microfinance Institutions (TAMFI) and the Coalition of Tanzania Microfinance Practitioners and Service Providers Limited (the “Coalition”) resolved to re-organize the two institutions into one association that would cater for the interests of the two legacy institutions. It was collectively observed that having two institutions conducting the same functions was unhealthy for the microfinance sector in Tanzania. They commissioned an independent team to undertake a study on how best the two institutions could be merged while accommodating Network best practices and the interests of the two associations.

The joint Board meeting between TAMFI and the Coalition held on 18th June 2010 resolved to go on with the merger process due to the following reasons:-
(i) To remove the confusion among the members and other Microfinance stakeholders;
(ii) Both associations have the same goals and objectives;
(iii) To attain wider network coverage;
(iv) To receive good will and reputation to the key microfinance stakeholders;
(v) To use the meager resources available in support of the strategically planed activities of the merged association.

The merger is between two institutions i.e. COALITION and TAMFI. The new organization will retain the name of Tanzania Association of Microfinance Institutions (TAMFI) and shall be operational from 27th July 2010.

2. Objectives of the new TAMFI
Institutional level
i. An inclusive network – More organizations are joining the organization
ii. A National Network: We are present at all levels and in all regions and districts in the country. Have an effective and less costly mechanism and technology to attain the national presence
iii. A United voice – speak as one
iv. Active internationally – Strongly East Africa, Africa and International arenas
v. Increased collaboration among members
vi. Benefit members – develop and deliver services that address important member’s needs/issues.
Industry level
i. Leading in organizing the industry – want to see the industry become more organized
ii. Have a united voice
iii. Participate and be recognized in National issues and activities – have influence in decision making with regard to microfinance issues
iv. Increase in number of formalized and regulated MFIs

3. Membership:
Categories of Members will be classified as follows:-
General Members
(i) Commercial Banks practicing offering microfinance services
(ii) Regional Banks offering microfinance services
(iii) Non-Governmental Organizations engaged in the provision of Microfinance services as core activity
(iv) Companies offering microfinance services
(v) Financial Cooperative
(vi) Apex bodies representing informal financial service providers like VICOBA, COCOBA
(vii) Community Based Organizations offering microfinance services as core activity
(viii) Whole Sale Microfinance organizations
(ix) Business Development Service Providers offering direct services to Microfinance Institutions as major clients.
(x) Micro insurance providers , Brokers and agents
Associate Members
(i) Professional Networks or Associations which have interest in Microfinance activities
(ii) Auditors, Accountants and consultants firms engaged in microfinance services;
(iii) Information Communication and Technology providers;
(iv) Other local and international Institutions or programs engaged in support of the microfinance industry.

Fees structure
Fees will include admission fee and annual subscription fee

Principles of setting institutional fees
Fees should be set to translate the inclusive membership aim, attract targeted clients or groups to join the network and continue to stay in the network but also help the institution to provide its intended services effectively. Fees shall not be seen as constrain towards achieving inclusive membership aim as shown in the table below
No
Member
Fees


Admission
Annual Subscription
1.0
Banks
200,000
750,000
2.0
Microfinance Companies
Micro insurance Companies and agents
150,000
600,000
3.0
NGOs and Financial Cooperatives


3.1
3 Billion and above
150,000
600,000
3.2
1 – 3 Billion
100,000
500,000
3.4
500 M – 1 Billion
75,000
250,000
3.5
Below 500 Million
50,000
100,000
4.0
Business Development Service Providers
100,000
250,000
5.0
Village Banks - VICOBA and CBOs
50,000
100,000
6.0
Associates Members
100,000
250,000

Elected Interim Board Members
TAMFI
Mr. E.P.Mkwawa
Mr.A.Millinga
Mr. A.N.Kaaya

The Coalition of Microfinance
MR. Joel Mwakitalu
Ms. Felistas Coutinho
Mr. Said Hassan
Signed by:

Edmund Mkwawa Joel Mwakitalu
Chairman TAMFI Chairman - COALITION