Yetu Microfinance

Yetu Microfinance Bank PLC is a Tanzanian microfinance institution and public company headquartered in Dar es Salaam. The name “Yetu” is a Swahili word meaning “ours,” reflecting the institution’s community-oriented identity. Its business developed from the Youth Self Employment Foundation, commonly known as YOSEFO, a credit-only microfinance organization that operated for approximately 14 years before its activities were transferred into a regulated microfinance-bank structure. The company was incorporated on 23 December 2013 under Tanzania’s Companies Act 2002 to assume YOSEFO’s business, including its branches, agencies and customer relationships. It subsequently became notable in Tanzania’s financial sector when it issued shares through the Dar es Salaam Stock Exchange’s Enterprise Growth Market. The initial public offering began on 23 June 2015 and involved 6,223,380 shares priced at TSh 500 each. The offer raised approximately TSh 3.1 billion from 14,273 subscribers. On 10 March 2016, Yetu became the first microfinance institution listed on the Dar es Salaam Stock Exchange. It is also associated with the Tanzania All Share Index. Yetu obtained a banking licence from the Bank of Tanzania on 20 February 2017 after meeting regulatory conditions, including the applicable minimum-capital requirement. The reference material reports paid-up capital of TSh 6.05 billion in 2018. These developments marked the institution’s transition from a credit-focused nongovernmental or foundation-linked operation into a publicly traded and formally licensed microfinance bank. The bank’s lending portfolio is aimed primarily at underserved and lower-income segments, entrepreneurs and agricultural households. Its solidarity-group loans are extended to organized groups whose members provide mutual support and effectively serve as informal guarantors for one another. Borrowers who have successfully reached the stated ceiling for group lending may qualify for Mavuno loans, which support individual borrowing. The bank also offers financing for small and medium-sized enterprises, including working capital, business and shop improvements, vehicles, imports and exports, processing and manufacturing activities. Agricultural finance includes SRI loans and mixed-farming loans for smallholder farmers financing crops and related farm activities. Other products described in the reference material include instant loans and education loans. On the savings side, the bank accepts compulsory savings connected with lending or collateral arrangements as well as voluntary deposits. As of 2019, the institution’s physical network comprised three branches and 16 financial service centres. Its branches were located in Dar es Salaam and Morogoro Region, while service centres extended coverage to locations including Zanzibar, Lindi, Kilwa, Pwani, Tanga, Mtwara and additional districts in Morogoro and Dar es Salaam. The network used an online real-time system linking branches and service centres. Customers could also access services through mobile banking, point-of-sale facilities, ATM cards and the Umoja Switch network, which provided access to more than 300 ATMs nationwide according to the cited reference material. Biometric teller systems were deployed across branches and financial service centres, supporting the bank’s focus on technology-enabled service delivery to lower-income customers. The company’s governance structure was described as having six directors, with a non-executive chairman and a managing director who also served as chief executive officer. The cited material identifies Ernest Ndimbo as chairman and Altemius Millinga as managing director and CEO at the time of reporting. Because executive appointments and operating networks may have changed, current details should be verified against regulatory filings or the company’s latest disclosures.

Yetu Microfinance Bank PLC was created to succeed the Youth Self Employment Foundation, or YOSEFO, a credit-only microfinance institution that had operated for roughly 14 years. The new public limited company was incorporated on 23 December 2013 under Tanzania’s Companies Act 2002, taking over YOSEFO’s branches, agencies and clients. The institution pursued a public-capital strategy through Tanzania’s Enterprise Growth Market. Its IPO opened on 23 June 2015 and comprised 6,223,380 shares sold at TSh 500 per share. The offering reportedly attracted 14,273 subscribers and raised about TSh 3.1 billion. On 10 March 2016, Yetu became the first microfinance institution to list on the Dar es Salaam Stock Exchange. The listing also connected the company to the Tanzania All Share Index. Yetu’s formal banking transition continued with a Bank of Tanzania licence issued on 20 February 2017. The licence followed compliance with regulatory requirements, including a minimum-capital condition. The cited reference material records paid-up capital of TSh 6.05 billion in 2018. The bank’s operating model combines relationship-based microfinance with conventional banking and alternative delivery channels. Solidarity-group lending uses organized borrower groups whose members support and cross-guarantee one another. Mavuno loans provide an individual-credit pathway for qualifying group-loan customers who have reached the stated group-lending ceiling. The institution also finances SMEs, agriculture, education and short-term needs, while accepting compulsory and voluntary deposits. By 2019, Yetu was reported to have three branches and 16 financial service centres. Its branches were in Mbagala and Mzizima in Dar es Salaam and Mngeta in Morogoro Region. Service centres extended the network to Zanzibar, Kilwa, Lindi, Temeke, Kigamboni, Kibaha, Ifakara, Malinyi, Masasi, Ruaha and Amani, among other locations listed in the reference material. Branches and service centres were connected through an online real-time system. Mobile banking, POS facilities, ATM cards and membership of Umoja Switch supplemented the physical network. Biometric teller systems were also installed to support service delivery in the lower-income market. The reported board structure consisted of six directors, including five non-executive directors and a chairman. Ernest Ndimbo was identified as chairman and Altemius Millinga as managing director and chief executive officer in the cited account. Later corporate developments, present leadership and the current branch network require confirmation from up-to-date company or exchange disclosures.

• 2017

  Banking licence granted

  [1]Yetu Microfinanceen.wikipedia.org

  The Bank of Tanzania grants Yetu a banking licence after the institution meets licensing requirements.

• 2016

  First listed Tanzanian microfinance institution

  [1]Yetu Microfinanceen.wikipedia.org

  Yetu becomes the first microfinance institution listed on the Dar es Salaam Stock Exchange.

• 2015

  Initial public offering

  [1]Yetu Microfinanceen.wikipedia.org

  The company launches an IPO through the Dar es Salaam Stock Exchange’s Enterprise Growth Market, raising approximately TSh 3.1 billion.

• 2013

  Yetu Microfinance Bank is incorporated

  [1]Yetu Microfinanceen.wikipedia.org

  Yetu Microfinance Bank PLC is incorporated on 23 December under Tanzania’s Companies Act 2002 to take over the business of YOSEFO.

A Tanzanian, community-oriented microfinance bank focused on financial access for group borrowers, small businesses, farmers, students and other underserved customers, with a combination of branch, financial-service-centre and digital delivery channels.

• Microfinance lending

  Solidarity group loans

  Loans for customers organized into solidarity groups. Group members provide mutual support and cross-guarantee one another, allowing the group to function as an informal credit and accountability structure for borrowers who may lack conventional collateral.

• Individual microfinance lending

  Mavuno loans

  Individual loans for qualifying members of solidarity groups who have demonstrated sufficient capacity and reached the stated group-loan ceiling of TSh 3 million. The product provides a path from group-based borrowing to individual credit.

• Business lending

  SME loans

  Financing for small and medium-sized enterprises, covering uses such as imports and exports, vehicles, shop and business improvements, working capital, processing and manufacturing activities.

• Agricultural finance

  Agricultural loans

  Agricultural finance that includes SRI loans and mixed-farming loans for smallholder farmers. The products are intended to finance crop cultivation and related farming activities.

• Short-term lending

  Instant loans

  Short-term borrowing designed for customers seeking rapid access to funds. The available reference material identifies the product but does not provide detailed eligibility, pricing or repayment terms.

• Special-purpose lending

  Education loans

  Loans intended to help customers meet education-related expenses. The cited material does not specify whether the borrower is the student, a parent or an institution.

• Deposit services

  Savings deposits

  Deposit services comprising compulsory savings associated with lending or collateral arrangements and voluntary deposits for customers seeking a savings facility.

• 2017

  Transition to a licensed microfinance bankStrategy

  Background

  Yetu needed to satisfy regulatory conditions to operate as a licensed microfinance bank, including the applicable minimum-capital requirement.

  Action taken

  The Bank of Tanzania granted Yetu a banking licence on 20 February 2017.

  Aftermath

  The licence formalized Yetu’s transition from the credit-only YOSEFO model into a regulated microfinance banking business.

  Source

• 2015

  Public-capital expansion through IPOM&A

  Background

  After being incorporated to take over YOSEFO’s microfinance operations, Yetu pursued an exchange listing to raise capital and broaden ownership.

  Action taken

  The company offered 6,223,380 shares at TSh 500 each through the Dar es Salaam Stock Exchange’s Enterprise Growth Market.

  Aftermath

  The offer reportedly raised approximately TSh 3.1 billion and paved the way for the company’s 2016 listing.

  IPO proceeds. Approximately TSh 3.1 billion raised (2015 IPO)

  Source

1. 1Yetu Microfinanceen.wikipedia.org