The Mbeya District Council has issued more than TZS 4 billion (approximately $1.5 million) in soft loans to local residents over the past five years in a concerted effort to reduce reliance on predatory lenders and expand economic opportunities for grassroots communities.
Agnes Elikunda, Head of the Council’s Community Development Department, made the announcement during a loan issuance ceremony held in Mbeya, where a symbolic cheque of over TSh 700 million was handed to small-scale entrepreneurs.
Among the beneficiaries were 32 transport sector officers engaged in various informal economic activities.
“The loans we are distributing today reflect our commitment to inclusive growth,” said Elikunda. “We urge all recipients to honour their repayment schedules so that these funds can continue to revolve and benefit more citizens.”
The initiative falls under the Tanzanian government’s broader financial inclusion strategy, which mandates local government authorities to allocate 10 percent of their internal revenue to interest-free loans for youth, women, and people with disabilities.
While the loans are administered at the district level, they are aligned with national policy goals of poverty reduction and enterprise development.
Former Member of Parliament for Mbeya Rural, Oran Njeza, who officiated the event, described the loan programme as a constitutional obligation and a practical fulfillment of the ruling party’s (Chama Cha Mapinduzi – CCM) pledge to promote citizen-led economic empowerment.
“These are not political handouts,” Njeza stressed. “This is institutionalised support, guided by policy, to return resources to the people and enable them to drive their own development.”
Beatrice Ngutu, speaking on behalf of the District Executive Director, urged loan recipients to treat the funds as an investment tool rather than a gift.
“These resources should uplift your businesses, your households, and ultimately contribute to the national economy,” she said.
Aron Sote, a divisional officer representing District Commissioner Solomon Itunda, warned against the misuse of the loans, noting that accountability measures were in place.
“Public funds must be respected. Those found diverting these loans for non-productive uses will be subject to legal action,” he said.
Akimu Mwalupindi, CCM’s district chairperson for Mbeya Rural, praised the council for implementing the loan scheme effectively and called for continuous efforts to monitor impact and ensure transparency.
The Mbeya District Council’s soft loan programme is part of Tanzania’s grassroots financing reforms aimed at unlocking the potential of the informal sector, which employs over 80 percent of the population but remains largely under-capitalised.