Africa-Press – Tanzania. LOCAL Government Authorities (LGAs) have provided crucial training in loan management to 2,827 youth groups that received loans drawn from the mandatory 10 per cent of councils’ internally generated revenues, the 2024/25 financial year.
Deputy Minister of State in the President’s Office, Regional Administration and Local Governments (PORALG), Ms Zainab Katimba, made the announcement yesterday while responding to a question raised by Special Seats MP Latifa Juakali (CCM) in the National Assembly.
In her question, Ms Juakali sought clarification on the government’s plans to educate the youth on prudent management of the loans issued to them.
These loans, according to government policy, are reserved for youth, women and people with disabilities and are sourced from 10 per cent of the internal revenues collected by the councils.
“Local Government Authorities have been providing loans to groups of Women, Youth and People with Disabilities based on Section 37A of the Local Government Finance Act, Cap 290 and the 2024 Regulations on the Issuance and Management of Loans to these groups,” Ms Katimba explained.
She added that according to Regulation 38 of the 2024 guidelines, councils are mandated to provide training to applicant groups on various topics, including savings culture, formation of productive groups, leadership, financial management, project implementation, reporting and loan repayment supervision.
Highlighting the government’s commitment, Ms Katimba noted that offering training ensures that recipients can better manage the funds, enhancing the sustainability of their projects and improving their livelihoods.
Meanwhile, another Special Seats MP, Esther Matiko (CHADEMA), raised concerns regarding the presence of ghost groups and fraudulent practices in the loan issuance process.
Responding to these concerns, Ms Katimba affirmed that the government takes decisive action whenever instances of fraud or non-existent groups are discovered in the allocation of the loans.
“The government has been taking various measures including suspending loans to implicated groups, launching investigations and taking disciplinary action against public servants involved or those who failed to fulfil their responsibilities according to the laws, regulations and public service procedures,” she said.
To address these challenges and strengthen the loan distribution system, Ms Katimba revealed that the government has launched a digital platform known as the “Wezesha” Portal.
This electronic system ensures that all groups are verified digitally before any loan disbursement is made.
“The Wezesha Portal will significantly enhance transparency and accountability in the loan issuance process,” she stated. Ms Katimba further emphasised that each council is responsible for both collecting revenues and providing loans to the designated groups within their jurisdictions.
“As the central government, we cannot collect revenues on behalf of the councils. However, we will continue to empower our councils to enhance their revenue collection capabilities,” she assured Parliament.
The government’s move to intensify education and introduce digital monitoring tools is aimed at reducing misuse of funds and ensuring that loans genuinely benefit the targeted groups of youth, women and people with disabilities.
The 10 per cent loans programme has been a cornerstone initiative in promoting economic empowerment among marginalised groups, fostering entrepreneurship and reducing unemployment rates across the country.
As the government continues to enhance mechanisms for transparency and effective management, it is expected that more beneficiaries will gain the necessary skills to properly utilise the loans, driving grassroots development and contributing to the broader national economy
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