Tanga reopens loan window with 3bn/- for women, youth

TANGA : TANGA City Council has announced the reopening of its loan window, allocating over 3bn/- to support women, youth and special groups as part of the government’s revenue-sharing programme.

The loan window will remain open from September 29 to October 29, 2024.

City Council Director, Engineer Juma Hamsini, stated that the funds are part of the 10 per cent internal revenue policy aimed at providing financial assistance to underserved groups.

The programme was suspended in April 2023 for a review of laws and regulations.

Engineer Hamsini advised applicants to choose business ventures they understand to avoid failure and warned loan officers against nepotism, urging them to follow the new government regulations.

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In response to previous challenges, including low repayment rates, the government has overhauled the 10 per cent revenue-based loan system and rolled out a pilot phase in 10 local councils.

The government is targeting a total disbursement of 227.96bn/- in the 2024/25 fiscal year, facilitated by a new digital system called the Wezesha Portal to streamline loan applications.

Tanga aims to distribute loans to at least 135 groups across its 27 wards, with amendments in regulations extending youth eligibility from 18-35 to 18-45 years, allowing more people to benefit.

The new regulations also allow groups to serve as collateral for loans, while individual members can operate separate businesses.

The government aims to improve accountability and oversight, with committees set up at regional and local levels to ensure proper management of the funds.