PM orders banks to help small-scale traders access bank loans

DODOMA: PRIME Minister Mwigulu Nchemba has directed partner banks that disburse loans equivalent to 10 percent of local government authorities’ revenues to remove stringent conditions that hinder small entrepreneurs from accessing the loans.

The directive was issued today, January 29, 2026, in Parliament in Dodoma as the Prime Minister was responding to a question from Segerea Member of Parliament, Agnesta Kaiza, during the Prime Minister’s Question Time.

Speaking in Parliament, Dr Nchemba said some of the conditions previously imposed required entrepreneurs to possess a title deed for a house or a guarantor who is a government employee. He clarified that such requirements will not apply to applicants who hold National Identification Cards (NIDA).

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In her question, MP Agnesta Kaiza sought clarification on the government’s plan to remove tough bank loan conditions affecting small entrepreneurs, an issue that has been a major obstacle for many citizens.

The Prime Minister explained that entrepreneurs who do not have National Identification Cards will be required to present an identification letter confirming their Tanzanian citizenship. He also urged Members of Parliament to endorse the arrangement of prioritizing Tanzanians in the allocation of these loans.

Additionally, Dr Nchemba explained the government’s decision to channel the 10 percent local government loans through banks, saying the move was intended to curb the emergence of fictitious groups that had been engaging in fraudulent practices to access the loans.