Poverty in TZ

When the majority of people don't have a bank account, how do they access financial services?  In TZ, only 6% of people had a bank account in 2001, it's probably about 10% now.  M-Pesa and other mobile banking services (literally via mobile) are helping people in rural areas access funds.  Interestingly, in many 'poor' countries, we think the poor don't have the ability to save.  In fact, their financial lives are quite complex.  Often, savings occurs 'in kind' - via tin (for roofs), chickens, grains, gold, etc. They often store cash with neighbors to keep it away from their husbands, or gain informal credit with the local shopkeepers. As useful as some of these 'financial products' may be, liquidity is lacking. In case of a health emergency or a need to pay tuition, they are not sufficient.  Microfinance helps the previously 'unbankable' gain access to vital financial services.

Currently, I'm working in Microinsurance.  The idea is to protect the poor from unexpected events which could lead them to extreme poverty.  When the poor finally build up their savings, the last thing we want is for their savings to be wiped out due to family illness, a flood which damages their home or goods in their store, etc.  It's a very new field and I'm seeing lots of innovation.  AKDN is working with Gates on this initiative.  Since the Dar Microfinance operation is quite small, I am moving to Mozambique to gain more experience in the microfinance side of things (lending to the poor).  I'm very excited for this opportunity and hopefully working in a small town will be a great cultural experience.

In case you don't know, here is our mission...
Microinsurance seeks to provide a safety net for  populations by providing comprehensive and cost-effective protection against life's unforeseen events. By assisting them to manage the risk of expensive healthcare treatments or sudden loss of assets due to drought or floods, as well as helping them plan for contingency in case of the death of a family member and paying for funeral expenses, Microinsurance can help secure the progress poorer populations have made in escaping abject poverty.

FOOD. At the wedding in Kenya, eating was very problematic since people love loading everything with nuts! Having a tough time with all the fried foods, and still haven't really figured out what to eat. Trying to fill my diet with as much fruit as possible, but it's not easy to find the good stuff.

Things are really costly here; it seems they know indians and tourists are not very price sensitive, so they charge what they want (service industry primarily). I'd like to cook @ home, but since I'm moving to Mozambique in a month, no point buying dishes and ingredients etc. I'm very impressed that many people are coming back here (not just on holidays) but are here to do business. Including some very young people. It's not an easy place to live, that's for sure, and everyday I'm amazed that my parents survived this place! Sure, 'it was much nicer back then', but still!!!

Lots of regular visitors from Calgary: Adil Juma, Rahim Moldeina, Nazia (Roger visiting soon too), Visram's, Hirji's, past south Kamadia and family, and many more! Also turns out a friend of a friend used to live in my flat!

The experience has been very valuable so far. Back home I would never get to work with product development, work directly with the CEO, and witness the growth of a new financial industry (microinsurance). The high level management meetings I've been a part of have given me great insights into the way business is developing down here. So very rewarding! Though I haven't worked with the poor yet, I should experience more of that in Mozambique.