Members of Parliament in Tanzania are calling for significant changes to the country’s lending systems, citing growing concerns over limited access to affordable credit for citizens and businesses.
The legislators argue that current loan conditions are too restrictive, leaving many people—especially youth and small entrepreneurs—unable to secure financing needed for economic activities.
During discussions, MPs highlighted high interest rates and strict collateral requirements as major barriers. They stressed that these conditions discourage borrowing and slow down business growth, particularly for small and medium-sized enterprises that rely on loans to expand operations.
Lawmakers also raised concerns about the inefficiencies within financial institutions, noting that lengthy approval processes and bureaucratic hurdles further complicate access to credit.
They urged authorities to simplify procedures and make lending systems more inclusive and responsive to the needs of ordinary Tanzanians.
In response, the government acknowledged the challenges and reaffirmed its commitment to improving the financial sector. Proposed reforms include reviewing lending policies, promoting digital financial services, and strengthening regulatory frameworks to ensure fair and accessible credit for all.
Overall, MPs emphasized that improving access to loans is essential for boosting entrepreneurship, creating jobs, and accelerating economic growth across the country.