Magufuli to Commence Distribution of Loans to Villages and City street Residents for ‘Economic Empowerment’

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Tanzania says has set aside over Tshs 59 billion (over $26m) in financial year 2016/17 to be allocated to each village and street in urban areas as loans for economic empowerment.

The program formed part of the President John Magufuli campaign Manifesto in the run up to October 2015 elections.

Speaking during a parliamentary session, Tanzania’s Minister of State in Prime Minister’s Office (Policy, Parliamentary Affairs, Coordination, Employment, Labour and Disabled), Jenista Mhagama said the nation was building capacity to start the program which.

“The government has allocated 59.5bn/- in the next fiscal year through Vote 21 to provide the loans to villages and streets,” Mhagama said.

Mhagama said the disbursement can only be effected after the government has put in place a mechanism to monitor effective distribution and usage of the money in a more appropriate way.

Despite impressive growth in its gross domestic product (GDP) over the past decade, Tanzania remains one of the world’s poorest countries in terms of per capita income. Approximately 90 per cent of Tanzania’s poor people live in rural areas.