Tanzania: Azania Launches Loan Scheme for Small-Scale Businessmen

The deputy minister for Lands, Housing and Human Settlements Development, Ms Angelina Mabula, (third right), cuts a ribbon to officially launch Azania Bank’s new loan scheme for small-scale traders in Mwanza yesterday. From left are the Azania Bank director of Business Development, Rhimo Nyansaho; chairperson of the ruling party’s Women’s Wing, Gaudensi Kabaka; Azania Bank board chairman Julius Ndyamukama; Azania Bank managing director Charles Itembe, and the Geita Urban legislator, Joseph Msukuma. PHOTO | THE CITIZEN CORRESPONDENT 

By Alex Malanga

Dar es Salaam — Azania Bank yesterday launched a new loans scheme that specifically targets

small-scale traders.

Dubbed 'Jikwamue', the loans product enables small scale traders - who apply in groups of five - to get loans of between Sh3 million and Sh30 million, the bank's managing director, Mr Charles Itembe, said yesterday. The actual launch of the scheme took place in Mwanza yesterday.

A statement, availed to The Citizen in Dar es Salaam yesterday noted that the scheme will particularly benefit women, youths, the disabled and special groups which have been finding it difficult to secure loans due to stringent conditions associated with lending.

"We fully understand what these segments want to grow and by extending this loan service to them, we hope to offer a holistic package of products that feed directly into their growth story," said Mr Itembe.

The new scheme does not require one to necessarily have a collateral. One will only need the surety of his/her colleagues who are fellow group members.

"I am optimistic you will all concur with me that our loan terms are soft," said Mr Itembe in an event graced by the deputy minister for Lands, Housing and Human Settlement Development, Angelina Mabula.

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He added: "Our bank is committed to helping small scale business operators to prosper and become key players in the country's economy."

The new loan product is a continuation of the bank's strategy to boost small entrepreneurs' growth and integration into the banking system.

Ms Mabula commended Azania Bank, saying coming up with such a new loan scheme, was a milestone in boosting the role of small scale traders in the economy.

"This reflects your support to government's efforts to improve the lives of its people," she noted.

The bank's board of directors chairman Julius Ndyamukama said for the country to realise its middle income status, it was inevitable for banks to offer loans to small scale traders.