SELFINA: Empowering Women through Micro-leasing in Tanzania
| Case Code: LDEN228 Case Length: 13 Pages Period: 2023-2024 Pub Date: 2025 Teaching Note: Available |
Price: Rs.400 Organization : Sero Lease and Finance Ltd. Industry :Financial Services Countries : Tanzania Themes: Social Entrepreneurship, Entrepreneurship, Inclusive Business Models,Social Enterprise |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Micro-Leasing the Selfina Way
SELFINA offered a micro-leasing facility wherein women, especially widows and single mothers, could enter into a contract with the company to lease equipment. Kisyombe added, “Before we lease out anything, we sit down with the women. We give them the opportunity to make sure they understand what credit is all about.”..
Initial Hiccups
While Kisyombe aimed to economically empower women, she herself faced some challenges. She had problems getting a license to run her company. She said, “To get licenses, we did face problems. It took us a long time. It’s not clear who has the mandate to give out the licenses. We eventually got it from the Ministry of Trade.” The company also had to pay high taxes. Kisyombe added, “We are registered with Tanzanian Revenue Authority. Taxation is a grey area. It is high.”..
Scaling Up
From serving just a few clients in 2002, SELFINA grew to finance more than 200 clients in 2004. The client base increased to 16,000 contracts by 2009. The company’s portfolio volume grew by 600% and by the end of 2008, it stood at US$5 million. SELFINA’s growth was attributed to only word of mouth since it did not advertise. The company received more client requests than it could fund..
The Impact Created by Selfina
SELFINA helped women create valuable and sustainable businesses by enabling them to acquire equipment for the businesses on lease. The business model offered financial relief to small businesses that did not have sufficient collateral to get access to standard loans from formal financial institutions. Also, their working capital was not held in fixed assets. The company reported a 99% pay back rate..
Looking Ahead
By providing micro-leasing solutions, SELFINA was helping in achieving the United Nations Sustainable Development Goals (SDGs) of no poverty, gender equality, decent work, and economic growth..
Exhibits
Exhibit I: Map of Tanzania with Regions of SELFINA’s Operations
Exhibit II: Criteria to Avail Micro-leasing Facility from SELFINA
Exhibit III: Products and Services offered by SELFINA
Exhibit IV: Challenges Faced by Women in Tanzania to Start Entrepreneurial Ventures
Exhibit V: Awards Won by Kisyombe
Exhibit VI: Other Recognitions Earned by Kisyombe
Exhibit VII: United Nations Sustainable Development Goals Addressed by SELFINA
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