Morogoro disburses 1.3bn/- in loans to special groups

MOROGORO: THE Morogoro Municipal Council has disbursed a total of 1.3bn/- in loans to 129 groups during the 2024/25 financial year to support their economic empowerment and improve livelihoods.

Of this amount, 759.7m/- was allocated to 81 women’s groups, 514.3m/- to 32 youth groups and 107.1m/- to 16 groups of people with disabilities.

Municipal Director Emmanuel Mkongo revealed this yesterday in a statement to Morogoro District Commissioner Mussa Kilakala during the launch of 681.7m/- in loans for the third and fourth quarters of the current financial year.

Mkongo explained that the funds come from 10 per cent of the council’s internally generated revenue.

So far, 74 groups have benefited, including 49 women’s groups receiving 421.5m/-, 17 youth groups 251.8m/- and eight groups of people with disabilities 28.4m/-.

“The aim of this fund is to provide these special groups with opportunities to increase capital for projects they have already started, enabling them to develop economically and improve their living conditions,” said Mkongo.

During the loan launch, District Commissioner Kilakala urged beneficiaries to use the funds responsibly and according to their project plans and group work schedules.

“Everyone must fulfil their responsibilities in both individual and group projects to ensure timely loan repayments as agreed in your contracts,” Mr Kilakala stressed.

ALSO READ: CRDB, Ilala launch 18bn/- loans

He also encouraged loan recipients to safeguard the funds and use them with discipline to become economically self-reliant by expanding their entrepreneurial activities, including transport businesses, through the loans.

Furthermore, Mr Kilakala called on municipal officials to intensify outreach to people with disabilities, noting that many in the municipality have yet to benefit from the loan programme.

“The current number of people with disabilities accessing loans in Morogoro Municipality is unsatisfactory. We must continue educating them, locating them, formalising their participation and helping them move from dependence to self-reliance,” Mr Kilakala said.

He added that when these groups receive loans, their dependency reduces as they engage in income-generating activities.

“I hope that by the next loan cycle, we will see an increase in the number of people with disabilities benefiting, as there are many in Morogoro Municipality,” he said.

Mr Kilakala emphasised the responsibility to advocate for these groups, create enabling environments, provide education, identify beneficiaries, formalise their status and ensure they receive loans.

The District Commissioner thanked President Samia Suluhu Hassan for her commitment to citizens and for enforcing the 2024 law mandating special loans for vulnerable groups.

He noted that the law requires councils nationwide, including Morogoro Municipality, to allocate 10 per cent of internally generated revenue for affordable loans to these groups.