The Mbeya District Council has opened a loan window under the 10% scheme for women, youth, and persons with disabilities for the second quarter of the 2024/25 financial year.
According to the law, each local council in Tanzania is required to allocate 10% of its internal revenue annually to economically empower these groups.
However, this initiative was temporarily suspended in April last year by Prime Minister Kassim Majaliwa during a parliamentary session in Dodoma. The suspension aimed to review loan issuance regulations following concerns raised about how the loans were being disbursed and repaid. This included issues highlighted by the Local Authorities Accounts Committee (LAAC).
In the 2024/25 financial year, the government, through the Minister of State in the President's Office for Regional Administration and Local Government (TAMISEMI), Mohamed Mchengerwa, announced the reinstatement of these loans after several improvements were made. These included amendments to the Financial Act, Chapter 29, revisions to loan regulations, and the development of new guidelines and training manuals.
In compliance with the government's directive, the Mbeya District Council has set aside a total of 1,173,952,179 Tanzanian Shillings for the second quarter of the 2024/25 financial year.
The Council’s Executive Director, Paulo Sweya, has invited all eligible groups from women, youth, and persons with disabilities to take advantage of this opportunity and apply for the loans to boost their economic well-being.
"Eligible groups must be recognized by the Council and issued with a certificate of recognition. They must be involved in small or medium-scale entrepreneurship or be planning to start such activities," Sweya explained.
He further clarified that there is a special provision for persons with disabilities, who do not necessarily need to be part of a group. He advised those interested to approach the local community development officers or ward executives to get assistance with the application process.