The government has directed the Ministry of State in the Prime Minister’s Office (TAMISEMI) to urgently engage banks to speed up the issuance of council loans, aiming to unlock financing for small businesses across Tanzania.
The directive was issued by National Assembly Speaker Mussa Zungu during a parliamentary session in Dodoma, where he raised concerns over persistent delays in loan disbursement. Despite many applicants meeting the required conditions, grassroots entrepreneurs have struggled for years to access the funds.
The 10 percent council loan programme, designed to support youth, women, and community groups, is a key pillar of Tanzania’s efforts to promote inclusive economic growth. However, bureaucratic procedures and strict lending conditions have limited its effectiveness, particularly for small and rural businesses.
To address these challenges, authorities have been urged to streamline processes, reduce unnecessary barriers, and review lending requirements to make the loans more accessible. The goal is to ensure that more entrepreneurs can benefit from the programme and expand their economic activities.
Overall, the move reflects growing recognition that improving access to finance is critical for empowering local businesses, creating jobs, and driving economic growth from the grassroots level.