THE National Social Security Fund (NSSF) has injected 5bn/- to help entrepreneurs owning small and medium enterprises effectively play part in making Tanzania a medium-size economy.
The move was reached at the end of the week when five government institutions signed a memorandum of understanding(MoU) in the economic project of auxiliary plants which will offer loans to facilitate production and loans for purchasing bond for buying industrial equipment and widening work areas so that the target to make Tanzania a country of medium-sized economy.
NSSF has already signed MoU with Small Industries Development Organisation(SIDO), Vocational Education And Training Authority(VETA), National Economic Empowerment Council(NEEC) and Azania Bank to form an appropriate system that will enable entrepreneurs qualify to get loans that will enable their enterprises to grow, manufacture quality products, especially those which cannot be produced in the country.
During the signing of the MoU that will be, for the first time, spearheaded by the five government institutions, the Chief Executive of NSSF, William Erio said social security funds, including NSSF, have four big tasks in helping the country’s industry sector develop, but two of them invest and recruit new members.
But at the moment, according to him, NSSF participates much in helping in creating a professional and scientific investment that includes providing financial assistance in a system as per agreement with four other institutions involved in the project.
To boost the industrialisation goal and the entrepreneurs, the NSSF Boss William Erio said his institution will inject 5bn/- so as to boost the project and will add more funds to enable more industrialists to benefit from the project.
In retrospect, NEEC Executive secretary Bengi Issa said the just signed project aims at implementing and developing the Fifth phase Government’s bid to improve to enhance industrialisation that will make Tanzania a medium-sized economy.
“ The industries to be opened under the system we have signed today will mostly dwell on goods or products that are not manufactured in Tanzania, and secondly, are the industries capable of employing a big number of people so as to enable the majority of Tanzanians participating in the industrial revolution.
“ The whole aim is to make sure that the industrialisation process involves the majority of Tanzanians since they are the targeted beneficiaries,” said the Executive Secretary.
According to the secretary, the 5bn/- injected by NSSF will be deposited at Azania Bank, who will supervise and monitor all loans to be involved in boosting the industrialisation goal.
Explaining further, the official said NEEC will be also involved alongside Azania Bank in making follow up of loans and their repayments while also monitoring if they real work the way it was planned.
In the project, Small Industries Development Organisation (SIDO) and the Vocational Education and Training Authority (VETA) will be fully involved in recognising genuine entrepreneurs seeking to open small or medium size enterprises and offer them technical and innovative training.
Additionally, The Executive Director of Azania Bank, Charles Itembe admitted his bank has been tasked to give feasibility studies for entrepreneurs seeking to benefit from NSSF funds injected for industrialisation.
The bank and other three stakeholders are also tasked to help alongside the entrepreneurs, VETA and SIDO with consultations on how to run their industries profitably.
“ The lowest amount for the entrepreneur is 8m/- while the highest amount is 500m/-. But for the majority of the small size enterprises, the amount is from 8 m/- and 50m/-,” said Mr Itembe.
