UNA Tanzania Secretary General, Reynald Maeda, clarifying on the 10% interest free loans.
As a champion to the implementation of the 10% interest free loans issued from the Local Government Authorities, UNA Tanzania hosted and highlighted the topic during the monthly debates organized by Policy Forum, advocating, raising awareness and information on the topic.
10% loans were first introduced in 1993 for the purpose of empowering marginalized groups of women and youth with no resources to set as collateral in financial institutions. In 2018, the amendment of Local Government Financial Act Cap 290 sec. 37A set 10% as a mandatory free interest loans set by LGAs from their own revenue for empowerment of women, youth and people with disabilities, by providing groups to carry out income generating activities to lift their households out of poverty.
10% loans are revolving loan schemes distributed by 4-4-2 principle, for Youth, Women and People with Disabilities respectively.
The debate engaged different stakeholders and beneficiaries from the 10% loans, that contributed to the challenges they face, both from LGAs and the beneficiaries, while giving recommendations on the amendment of the regulation as currently UNA Tanzania was chosen by PORALG to take lead to develop the National guidelines to ensure effective governance of the 10% loans at the local councils that will be used at all LGAs in Tanzania.