A total of 13bn/- has been disbursed loans to 4000 people through 30 community-based organisations by the Small Entrepreneurs Loan Facility (SELF) in phase two of its countrywide project.
Speaking at the 7th SELF Annual General Meeting held in Dar es Salaam yesterday, SELF project manager Abiah Kaaya said the funds were disbursed between 2010 and this year.
He said beneficiaries have been increasing, despite the challenge of shoddy CBOs the facility faced. According to him, despite the success, SELF is still facing the challenge of lack of education among recipients of its credit facilities.
Kaaya said financial institutions fail to expand because huge sums of money extended to beneficiaries were not being returned on time.
He added that in phase two of the project scheduled to end in 2015, a total of USD 30 million has been set aside for loaning small entrepreneurs in all districts in the country to enable them improve their income and create jobs.
Open the meeting, Finance deputy minister Perreira Ameir Silima said the aim of giving loans to people is to boost their businesses and thereby help them to reduce poverty and improve their incomes.
He said the SELF programme helped to improve people’s wellbeing, especially those living in rural areas, who most of them are working in the informal sector as well as peasants.
Silima asked SELF to ensure that extended loans benefit the targeted people, not otherwise because at the end of the project, the government will evaluate the entire project with a view to established how people have benefited from it.
For her part, SELF board chairman Elizabeth Nyambibo said Phase Two of the project will enable rural poor household to access credit for establishing profitable investments that will help them to reduce poverty.
The SELF goal is to improve the conditions and provide access of finance to 820,000 active people who are poor in rural and urban areas.