Evaluating the Impact of NMB Wakala Agency Banking on Agent Income Growth in Morogoro Municipality, Tanzania

Abstract

This study assessed the contribution of NMB Wakala agency banking to the livelihoods of agents in Morogoro Municipality, Tanzania. Guided by Social Capital Theory, the research explored the income changes experienced by agents and the skills acquired through their participation. Using a descriptive research design and a mixed-methods approach, data were collected from a sample of 153 agents drawn from a population of 247 registered NMB Wakala agents. The findings indicate that agency banking contributes significantly to agents' income growth, skills acquisition, and social capital formation. Agents reported notable monthly income increases from TZS 315,968.63 before joining the Wakala network to TZS 381,420.53 afterwards, an average gain of 20.7%. In addition to financial improvements, agents reported acquiring critical business skills, particularly in customer service, financial management, and digital transaction handling. The study concludes that agency banking plays a vital role in extending financial services and in advancing livelihood outcomes. It recommends further investment in agent training, digital infrastructure, and incentive schemes to maximise socio-economic impact.