Tanzania to Resume 10% Loans to Women, Youth, and Persons with Disabilities

Tanzania's President has announced the reinstatement of the 10% loans for groups of Women, Youth, and Persons with Disabilities, starting July 2024. This initiative will be piloted through a banking system in 10 trial councils, including the cities of Dar es Salaam and Dodoma, municipalities of Kigoma Ujiji and Songea, towns of Newala and Mbulu, and districts of Siha, Nkasi, Itilima, and Bumbuli.

The Minister of TAMISEMI, Mohamed Mchengerwa, disclosed this information today, April 16, 2024, during his budget speech for the fiscal year 2024/2025. He mentioned that out of the 174 remaining councils, an improved procedure will be implemented to address previous challenges that led to the temporary suspension of these loans by President Samia.

The enhanced procedure includes the establishment of a loan management unit for Women, Youth, and Persons with Disabilities at the Office of the President – TAMISEMI, and the formation of loan management committees at the levels of Regional Commissioners' Offices, Councils, and Wards. The responsibilities of Ward-level committees include identifying applicants, verifying loan groups, and registering them in the system before submission to the Council committee.

Furthermore, a new system called the Wezesha Portal has been designed and built to facilitate the loan application process for these groups. This system aims to address previous challenges and streamline the loan management process. Additionally, efforts have been made to enhance the capacity of loan supervisors by increasing their numbers at the Ward level. A total of 787 community development officers have been recruited and assigned to wards facing shortages.

The expected loan disbursement amounts to 227.96 billion Tanzanian Shillings, including 63.67 billion Shillings from ongoing repayments, 63.24 billion Shillings earmarked for new loans, and 101.05 billion Shillings allocated based on revenue projections for the fiscal year 2024/25.