"So, we agreed, that in addition to providing commercial banking services, the bank would also have serious concerns about the levels of poverty among the members of the diocese," explains Kihunrwa.
In earlier years, the people in this area of Tanzania had lost savings in co-operative societies that had been formed on the basis of many promises but which then collapsed.
"The people did not want to hear anything about cooperatives. But when they heard we were assembling, through the parishes, an institution that would help in financial services, they said as long as it is under the church, then they could re-form," Kihunrwa explains.
Confidence in the bank is shown by the fact that, currently, 64 Lutheran parishes out of 151 have created savings and credit societies. Put together, the people's savings make a substantial total, and the bank can then make loans. It also channels some government development money to members of the diocese.
Arthur Shoo, a member of the Lutheran Church in Tanzania and now director of programmes for the Nairobi-based All Africa Conference of Churches, explains that local people are now getting loans where once they would have had no chance of receiving credit from established commercial banks.
"Lives are changing," says Shoo. "With loans, the people are buying better dairy animals, which they keep for milk. They are also refurbishing their houses. They are also able to send their children to school since they can access loans for education."
The Evangelical Lutheran Church in Tanzania is a member of ECLOF Tanzania. ECLOF used to be known as the Ecumenical Church Loan Fund, which was founded in Geneva in 1946 by leaders of what would become the Word Council of Churches and bankers who sought to harness credit in the service of the most needy.
[Source: ENI]
