THE ROLE OF VILLAGE COMMUNITY BANKS (VICOBA) MICROCREDITS IN PROMOTING SUSTAINABLE MICRO AND SMALL SCALE INDUSTRIALIZATION IN KILIMANJARO REGION, TANZANIA

Abstract

This study examined the role of Village Community Banks (VICOBA) microcredits in promoting sustainable micro and small scale industrialization in Kilimanjaro region, in Tanzania. Sustainable industrialization is linked to VICOBA clients’ sustainable livelihood. Therefore, the study applied the Sustainable Livelihood Approach (SLA) to study the role of VICOBA microcredits on promoting the micro and small scale industrialization in Tanzania. The data were collected from 24 VICOBA leaders and clients through focus group discussion technique in Kilimanjaro region. The data were analyzed using content analysis where the role of VICOBA microcredits in promoting sustainable industrialization and challenges limiting the same were categorized as themes for the study. The findings from the study revealed that VICOBA microcredits have played the following roles on the promotion of sustainable micro and small scale industrialization in Kilimanjaro Tanzania: Supporting the production of raw materials, act as a source of entrepreneurial industrial ventures and facilitate training in industrialization matters. Also, the study revealed that the challenges faced by micro and small scale industries owned by VICOBA members were low productivity, unreliable markets for the products, low trust by the community and inadequate capital. The paper recommends that the government of Tanzania should support VICOBA clients to promote their contributions to the industrialized economy in Tanzania. This also will activate the sustainable livelihood of VICOBA clients.