SMALL BUSINESS OWNERS TO BENEFIT FROM BIL. 18.5 LOANS"

 
The government has agreed with NMB to provide these loans at a 7% interest rate.

The government, through the Ministry of Community Development, Gender, Women, and Children, has allocated 18.5 billion Tanzanian Shillings to provide affordable loans to small-scale traders nationwide through NMB Bank.

This was revealed during the signing ceremony of a two-year agreement between the Ministry and NMB Bank, held on May 6, 2024, in Dar Es Salaam.

Witnessing the event, the Minister for Community Development, Gender, Women, and Children, Dr. Dorothy Gwajima, stated that due to the importance of this sector, the government has taken steps to strengthen it, including providing opportunities for access to loans to enable economic empowerment.

"Let us remember the intention of Her Excellency President Samia Suluhu Hassan to strengthen the welfare of small-scale traders, which began in 2022 when she established this Ministry and included this group within it. Additionally, funds were allocated to build offices for traders in each region, and progress has been made with nine regions completing office construction while others are at various stages of completion," said 

Minister Dr. Gwajima urged those who will receive these funds to understand that they will be required to repay them along with a small interest rate, which has been set to aid in management and sustainability, ensuring that this loan will be beneficial, ultimately reaching and benefiting many small-scale traders.

She also added that this funding will serve as a catalyst for improving the economy of individuals and the nation as a whole.

The Secretary-General of Community Development, Gender, Women, and Children, Dr. Seif Shekalaghe, mentioned that the government has established a system to identify and register small-scale traders nationwide.

Speaking at the event, the CEO of NMB Bank, Ruth Zaipuna, stated that NMB will visit traders to assess their needs and provide financial education with the aim of fostering discipline to achieve their goals.

On his part, the Vice Chairman of the Federation of Machinga Association, SHIUMA, John Lusinde, thanked the government for this initiative, stating that they have faced challenges with high-interest loans and banks being hesitant to lend. He thanked President Samia for caring for various groups and promised that SHIUMA leaders would encourage faithful repayment.