Evolution of Mutual Help Groups in Modern Tanzania: Formal Practices in the Informal Economy

The article is based on the results of 8 field studies conducted by the author from 2011 to 2023 in the United Republic of Tanzania, in Dar es Salaam city. The majority of city residents are engaged in the informal sector of economy (street vendors, porters, hairdressers, etc.). Most of them are recent migrants from villages, so for them various practices of mutual assistance are important and relevant as an insurance against the background of the absence of formal work, social services and state support. In Tanzania, such practices have special names: kufa na kuzikana (sw. “death and funeral”), mchezo (sw. “game”) / upatu (sw. “circle”), vicoba (sw. “pocket”). Such groups are well-known practices of mutual assistance, which were initially formed at the grassroots level and were based on trust, but over the time wealthier citizens also got involved in such practices and even began to register such groups officially. Vicoba was different from all the other associations from the very beginning because this initiative was started by the Tanzanian government with the aim of developing small and medium-sized businesses, especially run by women. In 2018, the “Microfinance Act” was released, saying that the Bank of Tanzania has the ability to formally regulate all microfinance institutions, including vicoba groups. The article examines the evolution of mutual help groups in modern Tanzania: from informal associations based on trust to officially registered groups with government support.