ZEEA tightens loan rules as billions at risk

ZANZIBAR: THE Zanzibar Economic Empowerment Agency (ZEEA) has cautioned that borrowers without collateral are at a higher risk of defaulting on their loans.

Deputy Minister in the Ministry of Youth, Employment and Empowerment, Hassan Khamis Hafidhi, told the House of Representatives that 3.75bn/- is currently at risk of non-repayment.

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“As a result, ZEEA is revising its guidelines to ensure that every borrower provides loan security,” he said, urging beneficiaries to repay funds promptly so that others can also access financing. Urban District Council leads in outstanding arrears, with over 2.7bn/-, followed by West B in Unguja.

In Pemba, Wete and Mkoani districts face the highest repayment risks. The deputy minister also noted delays by some local authorities in remitting ZEEA’s statutory 10 per cent revenue share, which is affecting special loan programmes for youth and vulnerable groups.