Remarkable growth in HESLB loan repayments

DAR ES SALAAM: THE Higher Education Students’ Loans Board (HESLB) has achieved a significant milestone, increasing its annual loan repayment collections from 55 million/- in 2005 to 177bn/- as it celebrates its 20th anniversary since establishment.

The increase is an average of between 15bn/- and 16bn/- collection per month, compared to 1.8m/- to 2m/- that was being collected monthly in 2005

This achievement is attributed to the significant progress made by the government during various phases, particularly the sixth phase under President Samia Suluhu Hassan, which included the establishment of effective management systems for the disbursement and collection of loans from the beneficiaries.

Furthermore, amendments of the 2016 HESLB Act that enabled a slight increase in deduction from 8 per cents to 15 per cents, is also a factor that contributed to increase in loans repayment.

This was said by the HESLB Executive Director, Dr Bill Kiwia during his meeting with media editors held yesterday in Dar es Salaam.

The meeting, among other objectives, was aimed at provide updates on preparations for the upcoming 20th anniversary celebrations, which will feature three major events: HESLB Regional Clinics and Exhibitions, Marathons and a High-Level Symposium, all scheduled for early next year.

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“The collection of matured loans from HESLB beneficiaries, have increased from 55m/- in 2005 to 177bn/- to date,” said Dr Kiwia.

He added: “It is not a small feat and we must communicate this to the public to encourage those who have not yet started repaying, especially those started earning income, to repay the loans so that others can also achieve their dreams.”

Detailing on the anniversary, Dr Kiwia said that cerebration will commence with five days, HESLB Regional clinics and exhibition in seven zone including, Dodoma, Dar es Salaam, Unguja, Mtwara, Mwanza, Arusha and Mbeya.

The event will be officiated by the Minister for Education, Science and Technology Prof Adolf Mkenda in Dar es Salaam and the Zanzibar Minister for Education and Vocational Training Lela Mohamed Mussa in Unguja.

He said that the clinics are expected to attract at least 700,000 participants nationwide and will provide a dynamic platform for HESLB to engage directly with a diverse audience, including students, employers, parents, employees and the general public.

But also, customer service centres will be launched in Dodoma and Unguja.

Dr Kiwia also said that cerebrations will be seconded by a marathon, first of its kind to be conducted by the entity, with a theme “HESLB Marathon: 20 Years of Empowering Dreams, Every Step Counts” will be graced  by President Hussein Ali Mwinyi of Zanzibar on February 15, 2025 at Farasi grounds, Oysterbay, Dar es Salaam.

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The HESLB boss noted that, with at least 1,200 expected participants, apart from promoting physical fitness and community engagement, the marathon is expected to raise funds for purchasing science laboratory equipment for two schools in Dar es Salaam and Zanzibar and improving the HESLB’s call and contact centre.

Dr Kiwia said the cerebration will be concluded by the High-Level Symposium and Dinner Gala that will be held from February 17-18, 2025 in Dar es Salaam, featuring various stakeholders and development partners including World Bank and Academia and others from Korea, Ghana and Malaysia with President Samia as expected guest of honour.

“The symposium will bring together leaders and various stakeholders to discuss issues related to the financing of higher learning education and to recognise the achievements made to enhance and strengthen the network of collaboration among stakeholders,” said Dr Kiwia.

He further said over the course of two decades, since establishment of the board since 2005, about 8tri/- loans have been disbursed, with about 800,000 individuals benefiting up to 2024.

Furthermore, Dr Kiwia commended the government for increasing the higher learning loan budget to 700bn/- from 30bn/-, expressing expectation to reach 1tri/- budget allocation for the coming financial years.