Govt moves to address loan challenges
TANZANIA: IN an effort to empower citizens to access guaranteed funding through affordable loans, the government has launched a management guide for empowerment funds and programmes.
The guide is aimed at improving performance of the funds and programmes, enabling citizens to overcome challenges, particularly in accessing loans so as to achieve the goal of combating poverty.
Speaking at the launch of the guide, Deputy Prime Minister and Minister for Energy, Dr Doto Biteko, said that the initiative follows complaints, including reports from the Controller and Auditor General (CAG), expressing dissatisfaction with performance of the empowerment funding schemes in serving the public.
Dr Biteko made the remarks as he was representing Prime Minister Kassim Majaliwa at closing of the seventh exhibition of citizen economic empowerment programmes held from September 8-14 at the Bombardier grounds in Singida region.
“This guide will provide us with a clearer understanding of how we can utilise opportunities to access funding and collaterals. As we have also heard complaints from your representatives and reports from the CAG regarding dissatisfaction with the performance of these funds in serving the public,” said Dr Biteko.
He emphasised that the economic empowerment funds have made significant progress in the country, by reaching more Tanzanians through banks and providing more affordable loans.
Dr Biteko urged financial institutions to heed President Samia Suluhu Hassan’s call to reach out to citizens in their communities, for more people to access loan services and maximise benefits.
Furthermore, he said that through the sixth phase government’s initiatives, substantial progress has been made, with approximately 337bn/- loan disbursed to citizens as of August this year, up from 125bn/- in 2021 through the Agricultural Development Bank (TADB).
He noted that following the president’s emphasis on boosting agriculture, loans surged to 125bn/- in 2021, from 63bn/- in 2020 and 35bn/- as recorded in 2019
“Of all the debtors, 58.1 per cent are men, while 19 per cent are youths and only 22.4 per cent are women. The number of women remains low and I wondered why women, who are often the ones seeking loans, even opting to borrowing from informal lenders,” said Dr Biteko.
He called on banks to trust Tanzanians, especially women, by providing affordable loans and reducing requirements, including offering more education so that many can access the loans and continue investing in their businesses for personal and national development.
He urged women in Tanzania to take advantage of the government-established empowerment fund, while ensuring they understand the importance of repaying the loans for sustainable development.
In another development, the Deputy Premier further encouraged citizens to actively participate in local government elections, running for various leadership positions and choosing leaders who are qualified and genuinely committed to serving the community.
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On his part, Minister for Finance, Dr Mwigulu Nchemba, commended the empowerment initiatives in Singida, highlighting their positive impact on the lives of many women.
He highlighted various developmental projects underway in the region, such as economic empowerment programmes and irrigation schemes, have significantly advanced the area.
The Executive Secretary for the National Economic Empowerment Council (NEEC), Ms Beng’i Issa, commended the government’s decisions to establish empowerment funds to enable more citizens to participate in economic activities.
She noted that up to June 2024, there are total of 72 empowerment funds offering services such as loans, guarantees and grants to the public. Among these, 65 funds and programmes are government-owned, while seven are privately owned.
Ms Issa said of the funds, 18 provide direct loans to beneficiaries, seven offers loan guarantees through commercial banks and 33 provide grants in various areas, but also there are 14 empowerment programmes in place.
She mentioned that as of June this year, 25 empowerment centres have been established in nearly 15 regions across the country, with a total of 6.1bn/- disbursed to 1,497 beneficiaries through the centres over a period of six months.
Furthermore, she stated that while this is the seventh exhibition, the NEEC has conducted exhibitions in six regions so after aiming at raising public awareness about the funds, addressing the challenges of a lack of awareness.
