WAT HUMAN SETTLEMENTS

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• WAT - HUMAN SETTLEMENTS
• TRUST

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Cooperatives in Tanzania past and present

• Prepared by
• Tabitha Siwale
• Chief executive
• WAT-Human Settlements Trust

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PRESENTATION OUTLINE

• WAT- Human Settlements Trust
• Cooperatives in Tanzania Past Present
• Housing Cooperatives
• Housing Finance
• WAT-Savings Credit Cooperative Society
  (WAT-SACCOS)
  
• Shelter Loan Revolving Fund (SLRF)
• Beneficiaries
• Lesson Learnt
• Way Forward

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Introduction

• WAT - Human Settlements Trust
• established in 1989 as a non profit making NGO
• Previously known as Women Advancement Trust
  (WAT)
  
• Engaged in gender equality, equal rights in
  access to land, property ownership, inheritance

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Vision and Development Goal

• To see a society living in improved human
  settlements by 2025
  
• Development goal
• To empower low income communities particularly
  women to participate fully and effectively in all
  aspects of human settlements development
  

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How does WAT assist?

• Mobilizes communities to form housing
  cooperatives/groups
  
• Creates awareness
• Gives technical support
• Lobbies and advocates
• Assists in acquiring land/plots for members
• Encourages members to save and join WAT-SACCOS

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Co-operatives in Tanzania -Past

• Traditional cooperative practice in farming and
  housing construction were common
  
• Conventional cooperatives started in 1925

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Cooperatives Past, continue.

• Most cooperatives were agriculture products
  marketing cooperatives
  
• After independence cooperative movement was made
  an engine for economic development

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Past Cooperative Laws and rules

• Cooperative ordinance, Cap 211 of 1932
• Cooperative Societies Act of 1991
• Cooperative rules of 1991
• The rules guided societies on how to operate
• They also guided societies on how to form
  societies
  
• They had information on rights, liabilities and
  privileges of members etc

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Cooperative Societies Policy of 1997

• It took 70 years of cooperative history before
  the first cooperative policy was formulated in
  1997
  
• It was a result of free market and trade
  liberalization

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Cooperative Development, Present

• It is guided by
• Cooperative Development policy of 2002
• cooperative Act of 2003 and
• Cooperative Rules of 2004

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Cooperative Development Policy of 2002

• Vision
• Geared towards improved and sustainable
  cooperatives that are capable of fulfilling
  members economic and social needs.

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Cooperative development policy of 2002

• Mission statement
• To develop Cooperatives that
• Are member based,
• work for the betterment of members own economic
  and social development
  
• Operate competitively as independent economic
  entities and
  
• Care for present and future members

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Cooperative Act of 2003

• Section 22 outlines types of societies that can
  be registered which include housing Cooperatives
  designed to deal with building construction and
  housing programs for members

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Cooperative Rules, 2004

• Has rules on
• Formation of pre-cooperative groups and
  societies
  
• Registration
• Rights, obligations and privileges of members
• Duties and management of societies etc

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Existing Cooperatives May 2005

• Agriculture Marketing coop societies 2,648
• Savings credit coop societies
  1,875
  
• Livestock 132
• Fishing 99
• Housing 18
• Minerals 16

• Industry 148
• Irrigation 73
• Transport 17
• Consumers 182
• Others 522
• Total 5,730

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Housing cooperatives

• Government mobilized people to build better
  houses through mutual aid groups and self help
  since 1962
  
• Mwenge was a pilot housing cooperative society,
  registered in 1971

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Challenges to Cooperative Housing Societies in
Tanzania

• Access to land and security of tenure
• Lack of Housing credit facility since Tanzania
  Housing Bank collapsed in 1995
  
• Institutional framework Shifting of Housing
  Department to different ministries slows down
  housing development in the country.

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Savings Credit Cooperative Societies (SACCOS )

• SACCOS are important factor in cooperative
  movement
  
• They mainly save low and middle income groups
• There were 1,875 SACCOS by May 31st 2005
• They should be encouraged to provide
  micro-finance for housing.

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Housing Finance

• WAT-Human Settlements Trust, experience
• Since there is no housing finance facility low
  and middle income families use non loan sources
  salaries, informal incomes, contributions from
  friends, relatives and from inheritance.
• WAT started mobilizing groups to form (WAT-
  SACCOS) since 1996

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WAT-Savings and Credit Cooperative Society
(WAT-SACCOS)

• Formed in 1998
• Had 3,405 members by 31st march 2006
• Gives loans mainly for businesses other than for
  housing development
  
• Discussions to start housing micro-finance
  product are being conducted by interested parties

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Conditions for lending

• Must be members of a housing cooperative/group
• Must be members of Upatu group formed by members
  of the organization
  
• Must save 25 of the amount they want to borrow
• Must demonstrate ability to save for a period of
  3 to 6 months

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Shelter Loan Revolving Fund

• Created in 1998 with financial assistance from
  Rooftops Canada.
  
• Since 2003 NBBL Rooftops have been contributing
  through basket funding.
  
• Total Capital to date is us 53,692.
• The fund is strictly used for lending to groups
  under WAT for shelter projects only
  

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Beneficiaries

• NALA MAKAZI GROUP
• 117 Members
• 67 women 50 men
• 110 Members have been allocated plots
• The group received a loan of US 909 in 2001 for
  water project
  
• Upatu group from Nala-Makazi got a loan of US
  7,367 for housing construction (foundation) in
  2004
  
• 10 house completed occupied
• 24 houses under construction

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HANA NASIF INFORMAL
SETTLEMENT

• Security of Tenure Project funded through basket
  funding (NBBL Rooftop Canada)
  
• 12 members of Mkuhana group (pilot upgrading
  group)
  
• Borrowed us 1916 in 2005
• 12 houses have been improved.

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Beneficiaries cont..

• MAKAZI BORA GROUP
• 50 Members
• Group were given loan of us 24,390 in 2005 for
  purchasing 39 plots (repayable within 18 month)
  
• One member of Makazi Bora got a loan of us
  2,443 for constructing a core house used as a
  model house.

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Lessons Learnt

• Cooperatives is an important tools for
  development in Tanzania
  
• Cooperatives have been used throughout the
  history of Tanzania
  
• Cooperative in shelter sector are limited
• Lack of Housing credit facilities
• Partnerships between housing cooperatives are
  very valuable (external internal)

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The Way Forward

• Awareness campaigns, sensitizations and training
  should be increased
  
• Lobby Government for a clear shelter development
  policy
  
• Lobby and advocate for housing finance facility
• Lobby government to remove obstacles that hinder
  housing development
  
• Partnerships between International / local
  organizations strengthened.