Access to financial resources is vital for women to meet their basic needs and to start or expand businesses. Globally, however, women-owned micro, small, and medium enterprises (MSMEs) face a staggering $1.7 trillion financing gap.
According to UN Women, closing this funding gap could result in a 12% increase in annual revenues by 2030. But financial capital alone isn't enough. Women also need access to land, information, technology, and natural resources.
As of 2022, 2.7 billion people remained offline, limiting their access to job opportunities and entrepreneurship.
In many countries 87% with available data women are less likely than men to own land or hold secure land rights, despite one-third of working women being employed in agriculture.
Agnes Elikunda, Head of the Social Development Department at Mbeya District Council, said that the recent revival and improvement of the 10% loan scheme dedicated to women, youth, and people with disabilities has had a significant developmental impact.
“With the updated regulations, the loan system is now more structured. We expect better loan recovery rates,” she explained. “So far, we've disbursed over TZS 600 million to 20 groups in the first phase.”
The second phase, which will allocate over TZS 700 million, is currently underway. The application process has been widely advertised as required by law, and groups are encouraged to apply.
In the first round, some applications were rejected for not meeting the new criteria, but applicants were allowed to revise and resubmit their proposals.
Elikunda expressed deep appreciation to President Samia Suluhu Hassan for reviving and improving the loan scheme, ensuring the inclusion of marginalized groups in economic development.
“We thank our President for her strong support, especially for women. Thanks to her efforts in revising the regulations, the loans have resumed, and the process is much more transparent and efficient,” she said.
She also praised the Mbeya District Executive Director, Ms. Erica Yegella, for her commitment and collaboration in mobilizing and supporting community groups.
Elikunda noted that the district and regional leaders are actively monitoring the progress of loan recipients by sending teams to the field to evaluate how the funds are being used.
The council is determined to ensure that every ward benefits from the loan program. With 28 wards in the district, every eligible group will have access to funding.
“It's both a right and a responsibility of the council to serve the community equitably,” Elikunda emphasized.
The age limit for youth borrowers has been raised to 45, expanding opportunities for more young adults to qualify for funding.
Additionally, the loan structure has changed: while applicants still need to form a group of five, each member can now pursue an individual business project, which increases accountability and flexibility.
Special Seats Councilor Aidah Haule praised the revised guidelines, stating that they have greatly improved loan repayment and renewed public trust in the program.
“People are now more eager to apply for these loans because the process supports individual initiative within a group setting,” she said. “We've seen a surge in productive economic activities among women, youth, and people with disabilities.”
Mbeya District Commissioner Beno Malisa confirmed that the 10% loan program has significantly impacted target groups and called on beneficiaries to use the funds responsibly.
“Youth must demonstrate integrity in using these funds. A few cases of misuse have been noted, and we want to ensure these loans lead to real development outcomes,” Malisa urged.
Abdallah Juma, a resident of Nsalala, applauded the changes in the loan scheme particularly the extension of the youth age limit.
“This policy shift has reignited our drive for development. We feel more included now. I urge my fellow youth to handle the funds responsibly so the council continues to trust and support us,” he said.
Joseph Njole, another beneficiary, shared that his loan enabled him to establish a shoemaking and tailoring business. His main clients are students from primary, secondary, and college levels.
However, Njole highlighted challenges in market access and called on the government to help expand domestic markets for locally made shoes and leather products.
Under the leadership of Executive Director Erica Yegella, the Mbeya District Council continues to provide education and awareness campaigns to ensure that women, youth, and people with disabilities fully understand the loan procedures and responsibilities.
The council has confirmed that all eligible groups will benefit in the second phase of disbursements, and funds have already been allocated.