Government allocates TZS 200 billion to boost citizens’ economic empowerment

By The Respondents Reporter

The Government of Tanzania has set aside TZS 200 billion to strengthen economic empowerment for citizens across the country through key productive sectors, including agriculture, livestock, and fisheries. 

The initiative is aimed at expanding access to affordable capital and improving livelihoods at the grassroots level.

The funds are part of the government’s broader strategy to ensure citizens directly benefit from national resources through structured financial programmes implemented by ministries and development funds. 

The focus is on supporting smallholder farmers, pastoralists, fishers, and small-scale entrepreneurs to increase productivity and participate effectively in value chains.

This was announced in Parliament in Dodoma on April 28, 2026, by the Deputy Minister of State in the Prime Minister’s Office – Regional Administration and Local Government (PMO-RALG), Dr. Festo Dugange, while responding on behalf of the Minister of State.

He was answering a question from Special Seats Member of Parliament for Kagera Region, Devotha Daniel, who wanted clarification on whether the government planned to establish a special loan window targeting priority sectors such as coffee farming, livestock keeping, and small businesses in Kagera.

Dr. Dugange said the government remains committed to ensuring inclusive access to economic opportunities, noting that the TZS 200 billion allocation reflects the implementation of President Samia Suluhu Hassan’s directive to empower citizens economically through targeted financing.

“These funds are part of the implementation of the directive by His Excellency Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania, to empower citizens to engage in economic activities including agriculture, livestock keeping, and fisheries,” said Dr. Dugange.

He explained that alongside providing funds, the government is also intensifying awareness campaigns to ensure citizens understand and access available opportunities. 

The goal, he said, is to ensure that women, youth, smallholder farmers, and small business owners are fully included in economic empowerment programmes.

Dr. Dugange added that the initiative comes at a time when many small and medium entrepreneurs continue to face capital constraints, making government support critical for stimulating production and economic growth.

He further highlighted that in addition to the TZS 200 billion empowerment fund, the government continues to implement other financing mechanisms, including the 10 percent allocation from local government authorities’ own-source revenues, which benefits women, youth, and persons with disabilities.

In Kagera Region alone, the government has disbursed TZS 742.67 million through the 10 percent loan scheme for the 2024/25 financial year, demonstrating continued efforts to strengthen financial inclusion at the local level.

Dr. Dugange emphasized that the loan procedures under PMO-RALG programmes have been simplified to reduce bureaucracy and ensure that eligible citizens access funds more easily and transparently.

“The government has ensured that these loans are provided through friendly and simplified procedures so that every eligible citizen can benefit,” he said.

He urged citizens engaged in farming, livestock keeping, fisheries, and small businesses to take advantage of the available opportunities to improve their incomes. 

He also stressed the importance of proper use and timely repayment of loans to ensure the sustainability of the revolving funds.

“This is a real opportunity for citizens to improve their livelihoods. Responsible use and timely repayment will allow others to also benefit from the same funds,” he said.

The government believes that increased access to affordable financing will enhance productivity, promote value addition in key sectors, and raise household incomes. 

The initiative is also seen as a key pillar in advancing Tanzania’s broader goal of building an inclusive and self-reliant economy driven by citizen participation and economic transformation.

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