DED ordered to disburse loans on time
DODOMA: THE government has directed all District Executive Directors across the country to comply with existing laws and regulations governing the provision of loans to women, youth and people with disabilities.
This follows the issuance of the 2024 guidelines for the provision and management of such loans.
The directive was issued yesterday by the Deputy Minister of State in the President’s Office (Regional Administration and Local Government), Zainab Katimba while responding to a supplementary question by Special Seats MP, Ng’wasi Kamani (CCM).
In her question, the MP sought the government’s position on the persistent delays in loan disbursements to youth and whether there are any plans to increase the percentage allocated for the said loans, citing that many applications from young people remain unattended due to insufficient funds.
In her response, Ms Katimba said that council directors are legally obligated to complete the loan disbursement process within 60 days and ensure that all qualified groups receive their loans on time and in accordance with the regulations.
On the matter of increasing the percentage of loans, she encouraged councils to be innovative and expand their sources of revenue in order to boost the funding allocated to these loans, thereby widening access and coverage.
Ms Katimba further pointed out that the government continues to implement various initiatives aimed at supporting youth through additional financing avenues, such as the Youth Development Fund and the Economic Empowerment Fund under the Prime Minister’s Office.
She also mentioned sector-specific projects like Mining for Better Tomorrow (MBT) for the mining sector and Building a Better Tomorrow (BBT) for the agricultural sector as part of broader youth empowerment efforts.
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In her basic question, Special Seats MP Kabula Shitobela (CCM) asked on the reasons behind delays in disbursing loans to women who meet the set criteria, particularly in the Mwanza Region.
In response, the Deputy Minister clarified that delays in loan disbursement are not meant to deny women opportunities, but rather result from procedural requirements designed to ensure transparency, proper evaluation and accurate allocation of funds to groups that demonstrate readiness to implement viable projects.
She explained that loan applications are typically received within 30 days of a public announcement, followed by a 60-day process involving analysis, field inspection, evaluation and training before the actual disbursement takes place.
In another supplementary question, Special Seats MP Zaituni Swai (CCM) sought to understand the government’s strategy for educating the public about the loan programs and how information regarding disbursement is shared.
Ms Katimba responded by calling on all MPs to actively collaborate with the government in raising awareness about the available opportunities.
She said that specific training sessions are provided during the group evaluation process to guide beneficiaries on how to access loans, manage their projects and build sustainable livelihoods.
Special Seats MP Dr Christine Mnzava (CCM) also raised concern over what measures the government is taking against councils that fail to fully implement the loan disbursement programme, despite the presence of eligible groups.
In her response, Ms Katimba said that based on the ministry’s information, no council is currently defying the implementation of the loan provision.
Ms Katimba further said that the funds are generated from local council revenues and must be disbursed in compliance with legal and regulatory frameworks.
She reiterated that all directors of regional authorities and local governments are required to observe the law and ensure the allocation of 10 per cent of their councils’ local revenue for loans to women, youth and people with disabilities.
This initiative is aimed at economically empowering these groups and contributing to national development at large.
