Govt offers 22.07 bn/- in loans to special groups in seven months

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Govt offers 22.07 bn/- in loans to special groups in seven months
Govt offers 22.07 bn/- in loans to special groups in seven months

Africa-Press – Tanzania. THE government has informed the Parliament that a total of 22.07bn/- in loans has been dished out to groups of women, youths and people with disability since the arrangement was reinstated seven months ago.

Deputy Minister of State in the President’s Office (Regional Administration and Local Government, Zainab Katimba updated MPs on the issuance of the loans that are provided by the government, through its district councils.

Each district or municipal council in the country is required to spend 10 per cent of its internally generated and collected revenue by offering loans to groups of women, youths and people with disability.

The deputy minister offered an update on the matter when responding to the question posed by CCM Special Seats MP Sylvia Sigula who sought a response from the government on when it would reinstate issuance of loans the special groups after suspending them.

According to the deputy minister, it is indeed true that the government had suspended issuance of loans to the groups on April 13, 2023 to pave the way for devising a refined system to administer the matter.

She said after completing crafting the system, the government reinstated issuance of the loans on July 1, 2024, adding that until December 2024, a total of 64 councils had issued loans amounting to 22.07 bn/- out of 27.76bn/- that was applied by 2,726 groups of youths, women and people with disability.

In her supplementary question, the legislator asked the government on the possibility of individuals to apply for the loans instead of requiring them to form groups.

Responding, Ms Katimba said the regulations that guide the provision of the loans require groups to serve as guarantors.

However, she said when the group receives the loan, the money can be allocated to an individual person within the group.

The deputy minister said the government will continue reviewing regulations that guide provision of loans to special groups to enable beneficiaries get access to the credits with ease.

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