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Social Action Trust Fund Provides Credit
for
Entrepreneurs and Education for Orphans
The 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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