VILLAGE Community Banks (VICOBA), has proved a success in boosting and raising incomes among different community members in the country over the years.
This is evident among various groups
scattered across the country and are benefiting from the scheme. The
small financial institutions are effective in mobilizing financial
resources strategically by members engaging in small productive
activities through their small savings obtained as loans.
As from last year, Twiga Bancorp
dedicated their focus in supporting the Village Community Banks
(VICOBA), by introducing and improving their income generating
activities and it was carried out in Dar es Salaam,Coast and Morogoro
Regions.
Recently,the bank allocated 5bn/- to be
loaned to various entrepreneurs through their VICOBA groups to boost
their income generating activities at national level for the financial
year 2016.
The Director of Business Development,Mr
Solomon Haule,made the revelation in Dar es Salaam last month during the
launch of a special programme to assist VICOBA groups national wide
with loans.
“A pilot project was carried out on July
to December last year at the Mlimani City Branch with 600m/-giving out
to 24 groups from within the city and Coast Region as loans,” noted Mr
Haule. At least 220 groups from within the city and the Coast Region
have received various forms of loans.
Trainings on issues such as organizing
business processes, procedures for obtaining credit in financial
institutions and how to locate markets for their business will be
provided.
The aim of conducting the special
trainings is to help members of the groups to know the importance of
possessing a savings and storing their money in financial institutions.
Twiga Bancorp shall continue supporting the establishment of VICOBA in
the country, assisting them to open accounts that will earn funding in
their various activities.
Most of the groups and individuals face a
challenge of accessing loans in various financial institutions on the
absence of assets that would act as collaterals.
In addressing the challenge Twiga
Bancorp Bank decided to introduce the program to assist the government
in unleashing its people from poverty by raising the living standard and
the economy of its people and the country.
The strategy is part of government
efforts to boost development by supporting local individuals and groups,
the bank being among government institutions is acting to support the
efforts.
According to the Director for Business
Development, Mr Gershom Mpangala as one among government institutions,
it is thus the responsibility of the bank to implement policies that are
being set by the government to ensure poverty is alleviated.
“We are committed to create and promote
opportunities that attracts self employment and hence reduce the
unemployment rate in the country,” pointed out Mr Mpangala.
A beneficiary of the programme, Ms
Hamisa Mohamed from a group situated in the Coast Region affirmed that
the support they were receiving from Twiga Bancorp has assisted them to
boost their small business.
“We have obtained several loans
including a tricycle and motorcycles which the group uses to do business
in turn they have helped us acquire money to pay our loans in
installments on weekly basis,” said Ms Mohamed.
The only challenge that the group has
been facing is lack of nearby branch to deposit our weekly payments, she
requested the bank to extend their services closer to the targeted
customers.
“If it is possible, we request the bank
to establish a mobile service through the existing mobile networks so
that we can easily deposit our installments as it is usually time
consuming to travel from far to obtain the service,”She added.
The Chairman of the Association of Bajaj
Drivers (CHAMABAVI),located at Mikocheni-Kairuki, Mr John Roberto,
pointed out that to date the group has received eight tricycles which
have benefited them and acted as a means of paying the loan.
“We have been paying our loans in
installments and once we complete the payments the tricycles ownership
will be transferred to individual members,” pointed out Mr Roberto
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