By Our Reporter
The National Microfinance Fund (SELF MF) has disbursed Tzs138 billion in loans to 131,312 beneficiaries over the past three years, supporting the creation of 262,624 jobs as the government seeks to expand access to finance for small businesses and other income-generating activities.
The financing, issued between 2023 and 2026, has targeted entrepreneurs, farmers, livestock keepers, fishermen and other groups, with the fund also extending credit to cooperative societies to increase lending to their members.
Speaking to editors and journalists in Dar es Salaam yesterday, SELF MF Chief Executive Officer Santieli Yona said the achievements demonstrated the fund's contribution to economic empowerment through access to capital.
He said the institution had recorded a profit of Tzs3.19 billion over the period, while paying Sh490 million in dividends to the government.
The performance, he said, showed that the fund could maintain financial sustainability while fulfilling its mandate of providing financing to people seeking capital to establish or expand economic activities.
Through its lending programme, SELF MF also works with Savings and Credit Cooperative Societies (SACCOS) and Agricultural Marketing Cooperative Societies (AMCOS), providing them with funds to lend to their members.
Mr Yona said the arrangement had helped widen access to financing, particularly among small-scale entrepreneurs and people engaged in productive activities.
Some borrowers had started with small loans and gradually qualified for larger amounts as their businesses expanded, he said.
Beyond business financing, the fund offers housing development loans to help customers complete their homes, as well as loans for public servants.
It has also introduced financing for young people seeking to acquire three-wheelers, commonly known as bajaj, to establish transport businesses and generate their own income.
The initiative is part of efforts to address youth unemployment by supporting self-employment and participation in the economy.
However, the fund's ability to reach more borrowers will partly depend on expanding its geographical coverage and making financial services more accessible.
Mr Yona said SELF MF currently operates through 12 branches and two service centres, including facilities in Kigoma and Katavi regions. Some branches serve customers across more than one region.
Over the next five years, the institution plans to expand digital services to enable customers to access loan information and other services without travelling to its branches.
The shift is expected to reduce the cost and inconvenience associated with accessing financial services, particularly for customers living far from existing offices.
The fund is also using its lending products to promote environmental conservation by financing energy-efficient electric cooking stoves and other clean-energy solutions.
Mr Yona said financial education was another important part of its lending programme, with borrowers receiving guidance before and after accessing loans.
The training focuses on responsible borrowing, proper use of funds, business management and timely repayment.
However, he acknowledged that limited financial literacy, poor loan repayment practices and the informality of many small businesses remained major challenges.
These factors can undermine borrowers' ability to manage credit effectively and limit their access to formal financial services.
He said the fund was addressing the challenges through financial education, encouraging business formalisation and advising customers on the requirements for accessing loans.
While the Tzs138 billion disbursed over three years demonstrates the scale of SELF MF's lending activities, sustaining the impact will require borrowers to invest the funds productively and repay their loans on time, enabling the institution to extend financing to more people.
Mr Yona said the fund would continue working with stakeholders to increase access to capital, expand business opportunities and ensure that financing contributes to higher household incomes and inclusive economic growth.