…Premier orders borrowers of government’s interest-free money to repay by September 30
THE
government yesterday declared serious crackdown on loan defaulters to
recover unpaid loans, which were issued by state-sponsored empowerment
funds to support youth, women and people with disabilities.
Although
the government envisages consolidating the empowerment funds, which
currently range between 16 and 19 to make them have a noticeable impact
in the society, it has emerged that some beneficiaries are misbehaving
in repaying their loans.
Prime
Minister Kassim Majaliwa has therefore ordered all empowerment funds to
aggressively embark on the loan recovery from individuals or groups
that took advantage of the government loans.
“We
want the monies to also benefit other individuals or groups in the
society and this is very important for the funds to grow,” he said
yesterday while delivering a keynote address at the third National
Economic Empowerment Council (NEEC) forum here.
The
government allocated 56.8bn/- in 2016/17 for empowerment, with at least
17.5bn/- released to finance individuals and groups across the country.
In
2017/18, about 62bn/- was allocated but 15.6bn/- was released to 8,672
groups as of February this year. The premier said, “Those who benefited
from these loans are yet to repay.”
He
gave September 30, this year as the deadline for all individuals or
groups who had benefited to return the interestfree loans.
There
were no further details as to the specific number of beneficiaries or
the unpaid amount that has to be recovered within the deadline.
Observers however say that the state should impose friendly approach in recovering the loans from defaulters.
According
to Mr Majaliwa, the loans had opened up business opportunities,
attracting at least three million new businesses in the country.
The World Economic Forum 2018 has listed Tanzania as one of the best performing inclusive economies in Sub-Saharan Africa.
“Over
30 million Tanzanians conduct mobile money transactions, increasing
financial inclusion to 65 per cent,” the premier said, adding: “We have
also improved social services like education, health as well as
addressing corruptions in public institutions.”
Meanwhile,
the Prime Minister has directed all regions to work with the UN
Development Programme to establish regional investment guides to attract
domestic and foreign investors in the country.
He
also ordered all authorities to allocate specific land portion for
industries, with each region establishing 100 industries. Mr Majaliwa
said NEEC will next year conduct an evaluation of all regions to verify
their performance on executing the industrial agenda, particularly on
empowering citizens, economically.
Minister
of State in the Prime Minister’s Office, Policy, Parliamentary Affairs,
Labour, Employment, Youth and the Disabled, Jenista Mhagama said
Tanzanians were now aware and want to win the battle against poverty.
She
explained that the government will be implementing measures that will
see industries helping to create jobs and markets for agricultural
produce and increasing exports.
“We
have the raw materials and we are reviewing the national investment
policy to accelerate industrial growth in the country,” she noted.
NEEC
Executive Secretary, Ms Beng’i Issa said at least 500 delegates
attended the third forum which had Tanzania Standard Newspapers (TSN)
Limited, among its sponsors.
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