History

Opportunity International through its investment company Opportunity Transformation Investments (OTI) acquired Opportunity Tanzania’s Dar es Salaam operations from Faulu Tanzania Limited in December 2007.

While continuing banking operations, Opportunity Tanzania spent a large part of 2008 reconstituting its Board of Directors, building the senior management team, finalizing the three year strategic plan and sourcing the necessary funding. On the 16 January, 2009, the company officially changed its name to Opportunity Tanzania Limited. This not only aligned us with the global microfinance network of Opportunity International, but it also allowed us to roll out the group’s Christian mission in conjunction with Opportunity’s vision, values and customer code of conduct.

During 2010, Opportunity Tanzania opened Flagship Branch locations in Arusha and Moshi and Satellite Branch locations in Tengeru and Himo, bringing our total number of branch locations to five. In March 2010 Opportunity Tanzania went live on the Temenos T24 eMerge bank MIS and transitioned from the old system, MBWin, from March through August. Late in 2010, the organization went through a challenging period of turnaround, with new management joining and the introduction of new lending controls and loan products.

By early 2011, Opportunity Tanzania started to experience the success of the turnaround efforts. Portfolio at risk was managed and reduced to  below 5% over 30 days and all branches succeeded in introducing the new loan products Trust Group Loan (Mkopo Pamoja) and Solidarity Group Loan (Mkopo Vuka). As operations continued to stabilize, productivity across all branches began to grow, and staff and client satisfaction increased markedly. At the end of 2011, Opportunity Tanzania had achieved a 197% growth in loan portfolio, maintained a PAR > 30 days of 2%, and increased loan officer productivity to nearly 200 loans per loan officer. The success of the year was celebrated by all at the first annual staff Christmas retreat, held in Marangu, near Moshi, Tanzania.

Opportunity Tanzania gives thanks to its shareholders and Opportunity International Supporting Partners, especially Young Ambassadors for Opportunity, Opportunity U.S. and Opportunity U.K. for the continued support and encouragement.

OTL’s distinctive attributes

0. OTL’s sole raison d’être is to benefit the poor of Tanzania.
0. It aims to be sustainable but, unlike many other MF providers, it and its shareholders do not seek a return for themselves or to maximize profits. Any returns that may be made will be reinvested for the benefit of the poor in Tanzania.
0. Its target clients are those who would not generally be able to access loans or financial services from banks or other providers, because they are too poor.  The average disbursed size of loans that we make is currently $367.
0. OTL has spelt out, simply and clearly, its core values (including transparency and integrity) and tries to live by those values.
0. OTL is a member of Opportunity International Network, a well-established and –respected Membership Association, which brings to OTL:
   • Advice
   • Assistance including in good governance and strategy.
   • Oversight in relation to Finance, Audit and Risk
0. OTL, assisted by Opportunity International Network, aims to introduce the best microfinance practices and disciplines.
0. OTL aims to become a registered Micro Finance Company, a new status that few others enjoy. This will entitle us to be a deposit-taking institution as well as to make loans.
0. It regularly receives help and advice from others in East Africa, and benefits from South-to-South transfer of knowledge and best practices.
0. It aims to grow and develop so that it can offer microfinance services on a large scale in multiple locations in Tanzania. Growth is sought not for the benefit of the company but to enable more clients to be benefited.  Growth is also not sought at any cost: it must be sustainable.
0. It aims to offer the services that we believe are most needed by micro-entrepreneurs:  loans, micro-insurance products and (in due course) deposits. There are the products we believe poor clients need to protect themselves and their families in uncertain times.
0. It seeks to avoid practices that have brought microfinance into disrepute, such as over-lending to clients who become burdened by debt.
0. Its directors are practicing Christians; and devotions are held regularly in the branches.