The Acting Executive Director of Serengeti District Council in Mara Region, Mr. Victor Charles, has called on residents to actively participate in financial education training to enhance their understanding of borrowing, particularly loans provided by the council to women, youth, and people with disabilities.
Speaking during a courtesy visit by a team of financial education experts from the Ministry of Finance, led by Mr. Salim Khalfan Kimaro, Mr. Charles emphasized the importance of these training sessions in equipping residents with essential knowledge on loan management and repayment.
He noted that while Community Development Officers have made significant efforts in forming and monitoring loan groups, repayment remains a major challenge due to misconceptions surrounding government loans and a general lack of financial literacy.
"Many people mistakenly believe that these loans are grants, while some beneficiaries with special needs claim they cannot repay due to their disabilities. This mindset creates difficulties for others who are waiting for loan repayments to access funding," he explained.
Mr. Charles urged Serengeti residents to take advantage of the expert-led financial education sessions, which aim to address loan repayment challenges, promote smart investments, and encourage a culture of saving.
He further highlighted that while the council has consistently allocated 10 percent of its budget for loans to women, youth, and people with disabilities, the main challenge remains proper loan utilization, financial discipline, and repayment due to inadequate financial education.
Expressing concern over risky financial behaviors, he pointed out that some individuals seek high-interest loans from private lenders, only to struggle with repayment and risk losing their belongings.
Commending the Ministry of Finance for spearheading financial literacy programs, Mr. Charles noted that such initiatives will help eliminate financial mismanagement and ensure that loans serve their intended purpose.
"People receive loans, including those from the council, without clear financial plans. Eventually, they misuse the funds, treating them as handouts instead of leveraging them for income-generating activities. This hinders loan sustainability and prevents others from benefiting," he added.
Speaking on behalf of the Ministry of Finance, Mr. Salim Khalfan Kimaro stated that the team's primary objective is to educate residents on financial management, loan accessibility, savings, investment opportunities, and social security funds.
He emphasized that applying this knowledge can help individuals achieve financial stability and reduce economic hardships.
Meanwhile, Mr. Daudi Peter Karioba, a Serengeti District resident, acknowledged the increasing number of investment opportunities but admitted that distinguishing safe and profitable options remains a challenge.
He noted that the financial education sessions have provided valuable insights, particularly on government bonds as a secure investment avenue.
"Investing in unfamiliar ventures is risky because, in the event of losses, recovery becomes difficult. This training has clarified the best investment options for long-term financial security," he concluded.