Tujijenge Tanzania

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					Tujijenge Tanzania
GSBI 2010 application
Exercise Two


EXERCISE 2
Section1

Total Available Market of Un-banked in Sub Saharan Africa

Segment                   Size                       Needs
Sub Saharan Africa        563.88 million1            Banking services, reliable energy sources,
                                                     health care, education
Tanzania                  20 Million2                Banking services, reliable energy sources,
                                                     health care, education
Dar Es Salaam             1.62 million3              Banking services, reliable energy sources,
                                                     health care, education

Section 2.2

Total Available Market Statement
   1) Description: millions of underserved and impoverished people in Sub Saharan
       Africa, and more specifically Tanzania, who lack any access to financial services,
       reliable sources of energy, and health care.
   2) Characteristics: The bottom of the pyramid, the missing middle, un-insured
       people needing health care, population not connected to national grid.
   3) Needs: consistent source of cash flow, savings mechanisms, education, lighting
       and other energy needs, health care.
   4) How needs are met: A variety of comprehensive products are offered to meet the
       needs of each individual client. Group loans for the BOP. Solar loans for those in
       need of light. Health care loans for those without insurance. Individual loans for
       those seeking to expand their businesses and hire from the BOP.
   5) Estimate the size: UN population project 2009 – 863 million people in Sub
       Saharan Africa * 1% of population with access to financial services (UN
       microcredit/microfinance Africa 2008) * 2/3 population in need of banking =
       563.88 million. Tanzania = 20 million (2006 data from Finscope report on
       Tanzania). Dar Es Salaam = 1.62 million. (Finscope 2006 report on Tanzania)




1
  UN population project 2009 (863M), * 1% of population has access to financial services (UN
microcredit/microfinance Africa 2008)
2
  Finscope 2006 report on Tanzania
3
  Finscope 206 report on Tanzania
Alternative         Characteristics          Cost              Size         Positioning
Group Loans         Bottom of the            40% p.a.          1.5m in      Customer focused; loan agents
                    pyramid, small                             Dar          go out to field to meet clients.
                    groups guarantee                                        Flexible growth and upgrading
                    repayment                                               systems.
Individual          Targeting the            40% p.a.          15K in       Easy and fast processing.
Loans               missing middle.                            Dar          Repayment through M-Pesa,
                    Loans for capital                                       free sim cards distributed to
                    investment and net                                      clients.
                    working capital
Solar               Solar lanterns,          Subsidized        35           Partnership with low cost
Products,           devices sold at          by donors, or     million4     reliable solar provider D.Light.
Charcoal,           retail price             pay at once.                   Innovative distribution network
Kerosene,           without payment          $15 - $500                     gets product to underdeveloped
electricity         plans.                                                  areas. Payable in installments
                    Charcoal,                                               instead of at once.
                    Kerosene cheap
                    but unhealthy
                    source.
Health              Full premium             Cost of           100K in      Strong partnership with AAR
Insurance           payable once at          premiums          Dar          Insurance, the leading health
                    beginning.               $281 –                         care provider in East Africa.
                                             $2,474                         Premium can be paid over 2 – 6
                                                                            months.
Non         Lack of capital,                 No cost           20m in       Default
Consumption lighting, health                                   Tanzania
            insurance.




2.3

Segment                Compelling Reason for adoption             Product for Segment         Reason for non-adoption of
Definition
Business               Small/micro businesses can                 Group Loans,                Lack of trust in institution.
Growth                 improve production or expand               Individual Loans            available in area, no relevan
                       businesses, start earning more
                       money to improve home life.
Asset                  Businesses need more working               Group Loans,                Lack of trust in institution.
Acquisition            capital, greater inventory.                Individual Loans            available in area, no relevan
Education              Parents want to send children to           Group Loans,                Lack of trust in institution.
                       primary, secondary schools and             Individual Loans            available in area, no relevan
                       lack the capital.

4
    GVEP survey 2009 – 90% of population lacking access to national grid.
Health care   Families want safety and            Health Insurance    No knowledge of insurance
              assurance that they are taken care financing.           for today.
              of in case of emergencies. They
              can pay back loans regardless of
              sickness in family.
Energy        Families and businesses in need of Solar Energy loans   Lack of knowledge in syste
              clean and reliable lighting source.                     systems unreliable. No sui
              Entrepreneurs who want to keep                          repair. Unable to find prod
              stores open after dark. Parents
              who want children to study after
              dark.

				
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