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USAID/ Tanzania - Success Stories
›Social Action Trust Fund Provides Credit for Entrepreneurs & Education for Orphans
›HIV/AIDS in TanzaniaSocial Action Trust Fund Provides Credit for
Entrepreneurs and Education for OrphansThe Social Action Trust Fund (SATF) is a nongovernmental trust established by the Government of Tanzania and financed by USAID. It was launched in 1998 with the dual purpose of promoting private sector growth and helping HIV/AIDS orphans with the profits made from investments. There are currently over 1 million children in Tanzania who have lost one or both parents to HIV/AIDS. The fund is a creative blend of private sector entrepreneurship and humanitarian assistance. It is extremely well managed and operates with very low overhead. The executive board is composed of accomplished Tanzania professionals who volunteer their time to oversee operations. SATF provides both working capital loans and medium- and long-term loans for which the repayment period may extend to six years. Loan investments account for 86 percent of total investments with the remainder used to purchase equity positions. It has established a special fund for small and micro projects; in 2000, this special fund approved 33 individual projects valued at nearly Tanzanian Shillings 500 million (US$625,000). After three years of operation, SATF has had remarkable success in its investments, with a return of 11 percent on the original capital of US$12 million.
The fund makes grants to community groups and NGOs working with HIV/AIDS victims and their families. It has supported 13,525 orphans in 14 regions since 1998. Due to successful return on investments, it has been able to increase the orphan fund every year. The fund plans to provide TSh 300 million (US$375,000) in 2001, which is triple the amount provided in the first year of operation. With these increases, SATF has become one of the largest trust funds for orphans in Africa. The grants support primary and secondary education for children whose parents have died of AIDS and are therefore unable to pay school fees and uniform and book costs. Pupils who excel at the O-level are also assisted to go to university. SATF monitors the management of these grants and amends guidelines and procedures as necessary to ensure that funds are used appropriately. The goal of the Trust Fund is to double its investment capital and generate enough income to support orphans in all 20 regions in mainland Tanzania.
An excellent example of the groups supported by SATF grants is the Kilimanjaro Women's Group Against AIDS (KIWAKKUKI). In addition to assistance from SATF, this organization receives USAID support as part of a network of nongovernmental organizations leading the battle against HIV/AIDS in the countryside. Female volunteers established KIWAKKUKI in 1990 with no resources beyond their commitment to make a difference. They felt the epidemic engulfing them and realized that there would be little help from the government. These women saw their families and neighbors suffering and dying and were galvanized into action to stop the spread of the disease. In the past 10 years, the organization has grown from five women in a small office in Moshi to a multifaceted organization of over 2,000 women and youths supporting daily activities in six districts in the Kilimanjaro region. Depending solely on volunteers and charitable donations, their accomplishments are inspirational. They have sponsored 1,500 orphans for schooling and organized an education team, which has reached nearly 40,000 people. KIWAKKUKI's plans include expanded community education, creating counseling centers for children, and providing vocational training for primary school graduates.
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HIV/AIDS in Tanzania
World AIDS Day 2000 signaled a turning point in Tanzania's fight against HIV/AIDS. President Benjamin Mkapa announced the formation of a new commission-the Tanzanian Commission for AIDS (TACAIDS)-to lead an accelerated, multi-sectoral response to HIV/AIDS. USAID played a pivotal role in fostering this momentous policy change.
Over 18 months, USAID supported efforts of civil society groups, Ministry of Health staff, and government partners outside the Ministry of Health to advocate for policy change. USAID's role was based on the principle that the decision to change national policy and create a new structure for the national HIV/AIDS program had to come from the highest levels of government and that Tanzanians had to drive the process. USAID supported four critical activities. The first two were assessments requested by the Ministry of Health. One, the assessment of the organization and management of the National AIDS Control Program, recommended changing the institutional structure with the creation of a semi-autonomous commission under the prime minister. The second study assessed the HIV/AIDS information needs of senior political and administrative leaders. These studies set up processes for dialogue and consensus building among a wide range of Tanzanian stakeholders to improve HIV/AIDS policy and accelerate the response to the epidemic.
USAID then supported the Tanzanian Public Health Association's efforts to mobilize nonhealth ministries on their role in national government to address HIV/AIDS effectively. This broke new ground and generated ownership of the problem by partners outside the health sector. Continuing to push the process, USAID took leadership of a working group on HIV/AIDS within the Tanzanian Development Assistance Committee. Deliberations by this group led to a shared understanding of the issues constraining HIV/AIDS policy formulation and response, as well as a coordinated donor position. HIV/AIDS is now one of the top priorities throughout national government, the private sector, and the international community.
Over the past year, the government has taken important steps to raise the priority of the HIV/AIDS epidemic. First, the Government of Tanzania (GOT) included HIV/AIDS in the development of the Poverty Reduction Strategy Paper, linking HIV/AIDS with debt relief and giving it high visibility. Second, the GOT committed funds-for the first time-to 24 different branches of government at central, regional, and district levels for their fight against the epidemic. Third, the GOT funded civil society groups to provide information and services to reduce transmission and to care for HIV/AIDS sufferers. Government plans for 2001/2002 include a special study for a Medium Term Expenditure Framework for HIV/AIDS and a streamlined planning process. These initiatives mark the integration of HIV/AIDS in government planning and budget processes.
The presidential directive to establish a Tanzania Commission for AIDS (TACAIDS) is pivotal. TACAIDS signals the GOT commitment to addressing HIV/AIDS as a development problem that requires the involvement of sectors other than health for successful prevention and care. TACAIDS will have the authority to lead and ensure the participation of a wide array of partners-within and outside the government. It can also ensure that resources are used effectively for maximum impact. Now, together with Tanzanian leadership, the U.S. government is an excellent position to support an accelerated response to HIV/AIDS in Tanzania.
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More about USAID/ Tanzania
USAID/ AFR Success Stories
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Updated: Wednesday, January 9, 2002
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Last Updated on: July 19, 2004 |
