How do you increase and enhance the financial services in rural areas of Tanzania?

Africa is sadly home to some of the most impoverished locations in the entire world, and unfortunately, Tanzania is one of these locations.

Despite the country’s economy showing strong resilience in the face of adversity, and showing steady rates of growth over the last decade or so, it still remains one of the most impoverished countries on the continent.

But exactly why is this?
After all, Tanzania’s economy has grown, by as much as 6.3% to be exact, so if the economy is growing, why are roughly 1 in 2 people still living in extreme poverty? Well, the main reason is that financial services in rural areas are so lacking?

Yes, Tanzania relies heavily on farming and agriculture in its rural locations, but in terms of growth and development, these areas have been concentrated primarily on towns, cities, and urbanized areas. This means that remote locations and rural communities are sadly being left out. So, how do you increase and enhance the financial services in rural areas of Tanzania? The answer may come as a bit of a surprise to some of you, so read on and all will become clear.

Training and education for farmers

First and foremost, one of the main ways in which you could help enhance financial services in rural parts of Tanzania is by providing additional training and education for local farmers. Not too long ago, $30 million USD was pumped into Tanzania’s economy to help provide farmers with the latest knowledge and educational services surrounding farming.

They were taught new and innovative ways of conserving resources, making seeds and fertilizer stretch further and last longer, and how to keep expenses low whilst maximizing productivity. The world of farming and agriculture is constantly changing and advancing, which means that farmers need to not only receive the necessary training and education to stay relevant, but they need to receive the latest training and education.

Affordable energy

This is perhaps most important of all, yet very little is being done in terms of affordable and renewable energy in Tanzania. You see, in mainland urbanized areas, around 2 in 3 households has electricity and power. In rural areas, however, fewer than 20% of all rural households have access to electricity or power. Without energy, it simply would not be possible for these rural communities to break free of the grip that poverty has on them. This essentially means that additional funding should be placed into exploring new avenues for renewable energy production, as energy in rural locations would not only help households, more importantly for the economy, it would also help businesses grow and expand as well. For example, in farming communities, solar powered water pumping technology is being utilized for irrigation purposes, this is beneficial because it saves on energy costs, plus it enhances crop yields and quality as well. For fishermen and those involved in horticulture, refrigeration tech can be used to keep produce fresh for long before the product reaches the market. Again, this is hugely beneficial because not only does it cut back on waste, it enhances profit margins, and also helps boost local economies in the restaurant and hospitality trade, as they have fresher, tastier produce to offer their customers.