To what extent is industry self-regulation applicable to microfinance ? The case of Tamfi

As microfinance is likely to gain importance after the recent sanitary crisis, orienting microfinance
institutions' practices towards the achievement of their social mission is essential. Going beyond the usual
dichotomous 'government-or-market' view, we examine the intervention of another fundamental actor:
microfinance associations (MFAs). MFAs are member-controlled organizations gathering individual
microfinance institutions under a common umbrella to promote the interests of the sector. By creating or
joining a MFA, member organizations pool or manage resources to collectively influence their practices and
to pursue shared interests. Yet, just like in other sectors, MFAs have often encountered major obstacles
undermining their roles and contributions. Based on exploratory qualitative interviews that we conducted
at the Tanzanian Microfinance Association, we propose to study MFAs through the lens of the institutional
design principles identified by Ostrom in her contribution to the theory of the commons. We investigate
what can be learned from this increasingly flourishing theory by mobilizing it as an analysis grid, with a view
to identify the main reasons behind free riding among members and potential obstacles to the 'ideal'
management of a MFA. Doing so, we also provide a theoretical contribution suggesting the main questions
to be asked by MFAs, and their interdependencies.