Rural- urban complementarities (RUC) in Tanzania: analysis of savings and credit services at Kibaigwa in Kongwa district

The study was carried out in Kibaigwa Township and immediate hinterlands at Kongwa district. The specific objective of the study were to: identify and characterize savings and credit services in the study area; assess rural-urban linkages between Kibaigwa emerging urban centre and immediate rural areas and to determine the role of savings and credit on development of Kibaigwa urban centre. Primary data were collected using structured questionnaire administered to 120 respondents. Microfinance institutions present includes: KIFISSACOS; UMAKISSO; KAMCOs and Cargo porters. These institutions are important instrument helping microenterprises and farmers to access savings and credit services. Credit and savings to poor enterprises create potential for the growth of business investments and help in rural-urban linkages which leads to emergency of Kibaigwa Township. Based on the findings of this study the following recommendations were made: The government in collaboration with various development partners should consider the possibility of establishing credit institutions to provide specific credit and savings needs to small farmers and small businesses; Land registration by the government must be immediately carried out to allow the majority of poor farmers to have legal land ownership rights and be able to use it as collateral when they apply for credit from formal financial institutions. The government should instate policy that creates favourable conditions and investment opportunities in urban areas through: Improving and increasing roads, health centers, primary schools and secondary schools, rural electrification; water services and transportation services between villages and townships.