Abstract:
In recent years, finance interventions have become popular within the development community. The
success of such interventions has been exemplified by Grammeen Bank in the South, where women in
microenterprises have been empowered by credit availability, and the Credit Union movement in Ireland,
where positive impacts have been noted among those who were subject to the determinants of sometimes
ruthless moneylenders. Many financial service interventions attempt to improve the livelihoods of
community sectors, such as the rural poor, or women in the informal sector. There has been conflicting
evidence of how much of an impact these interventions have on livelihoods and enterprise development.
Tanzania operated as a monoparty socialist state from its independence in 1962 to the beginning of the
1990s, when trade liberalisation policies were initiated, and multiparty politics was introduced. During
much of this period, co-operatives operated as monopolies within the state. Credit co-operatives operated
within the state since the 1960s, and have taken on various forms since this time. Other financial service
providers have also come into play, and span many forms, from moneylenders through NonGovernmental Organisations to formal financial institutions such as banks. This study looked at the
impacts that financial services have had on particular aspects of smallholder livelihoods in Moshi rural
district, a province of the Kilimanjaro region in the north of Tanzania. The presence of financial services
was found to have an empowering impact on the community, while the nature of the services provided
was found to be re-enforcing gender inequity
