Challenges to Accessing Credit Financing from Financial Institutions by the Urban Based Street Vendors: Experience from Dar Es Salaam – Tanzania

This study assessed challenges to accessing credit financing from Financial Institutions by the urban based street vendors in Dar es Salaam - Tanzania and recommends strategies for ensuring effective access to this crucial service. The study utilised mixed methods approach design and data were collected through interview, questionnaire, Focus Group Discussion (FGD), review of secondary data, and observation techniques based on the purposive and random sample size of 104 respondents. The quantitative data were analysed descriptively by using Statistical Packages of Social Science (SPSS) while the Qualitative data were analysed content-wise by using MAXQDA software. Findings show that generally vendors were incapable of sufficiently accessing financial support from the financial institutions due to a number of reasons. These reasons include the vendors’ inability to comply with the established procedures for accessing financial support, lack of financial information relating to when, how and where to acquire the financial service, vendors’ inability to afford collaterals against the credit financing as well as too high loans interest rates. Another one is lack of relevant documents by the vendors required for accessing credit financing. In order to resolve the challenges, the researchers recommended equipping vendors with relevant credit financing information, prioritising provision of group loans to vendors as well as organizing the street vendors into groups. Other strategies to consider would be reduction of loan interest rates by the institutions, eliminating bureaucracy in accessing credit as well as engaging in business policy advocacy in favour of the vendors to access financial support.