Overview
Community Microfinance Groups (CMGs) play a vital role in advancing financial inclusion across Africa, particularly among women in low-income and rural communities. In Tanzania, these informal savings groups serve five million adults, demonstrating deep-rooted financial resilience. However, they often operate outside the formal banking system, limiting members’ access to credit histories and broader financial services.
The Big Question: To Digitise or Not?
While digitisation offers improved security, transparency, and accessibility, concerns remain around privacy, social cohesion, and levels of digital literacy. FSD Tanzania (FSDT), in partnership with the FSD Network Gender Collaborative Programme and Mixx by Yas (formerly TigoPesa), is working to bridge the gap between informal and formal financial systems.
The Takeaway:
Digitising CMGs is not a one-size-fits-all solution. True success lies in striking a balance between innovation and community needs—ensuring inclusivity and maintaining trust. When implemented thoughtfully, digital transformation can empower women, expand financial inclusion, and support sustainable economic development.
Your Thoughts?
How do you see digitisation affecting informal financial groups in Africa? Let’s discuss!
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