Mahundi: Mandatory 10 pc loans fast-tracked

DODOMA: THE government is slashing red tape and streamlining the loan process to ensure that capital reaches women faster than ever before.

Rather than settling for complex paperwork, the new strategy focuses on removing the unnecessary barriers that have historically locked women out of the financial system.

Deputy Minister for Community Development, Gender, Women and Special Groups, Engineer Maryprisca Mahundi, recently detailed this shift in the National Assembly. She said that the government is now bypassing traditional hurdles by partnering directly with private lenders and deploying community officers to bring loan education straight to the doorstep of women’s groups.

The Directive to Local Councils in one of the most significant moves for local empowerment, the Deputy Minister issued a stern warning to council directors across the country.

She also directed council directors to stop delaying the disbursement of the mandatory 10 per cent government loans and ensure that these funds—specifically reserved for women, youth, and people with disabilities—actually hit the bank accounts of the citizens who need it most.

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Minister Mahundi stressed that these funds are a key directive and must be released without delay. By moving the focus from policy to enforcement, the government is holding local councils accountable to ensure this capital stimulates economic development in local communities.

A loan is only useful if you know how to use it, Eng Mahundi said to make sure no woman is left behind, the government is launching a major education drive where community development officers act as financial coaches on the ground.

“Our mission focuses on translating complex bank talk into plain language, removing the mystery from the application paperwork, and staying in touch with borrowers to ensure the funds are actually helping local businesses grow,” she said.

This funding is rooted in a unique Tanzanian policy that requires every local council to set aside 10 per cent of its internal revenue for interestfree or low-interest loans. This fund is strategically divided to ensure fairness, with 4 per cent dedicated to women’s groups, 4 per cent reserved for youth entrepreneurs, and the remaining 2 per cent allocated for people with disabilities.

Historically, the biggest problem was that these funds were often delayed by bottlenecks and complicated forms. The new strategy is specifically designed to bypass these hurdles and get the money into the hands of those ready to work.