PLANS are underway to transform Small Entrepreneurs Loan Facility (SELF) project into a legal entity in order to enable the majority of people especially in rural areas have an access to micro finance.
The project Manager Mr Abiah Kaaya told a news conference in Dar es Salaam that the plan is being implemented by the government and African Development Bank.
The project scheduled to end in 2015 focuses on reduction of poverty through facilitation of sustainable micro finance services aimed at enhancing economic opportunity and welfare of entrepreneurs in rural and urban areas.
"The process to undertake the plan has already started and before the end of the project (2015) we are expecting to settle the plan," he said adding that some of the procedures such as consultant studies have been completed.
He was speaking during a ceremony to hand over 300m/- and 150m/- loans to Victoria Finance Limited and Mwanga Community Bank respectively. The facility that was started in 2000 has issued loans amounting to 43bn/- to individuals and micro finance institutions including the Savings and Credit Cooperatives (SACCOS).
"Some 9500 entrepreneurs and 361 institutions benefited from the loan (43bn/)," he said. The facility implemented in two phases has planned to issue 18bn/- loans in the second phase, 2009/10 to June 2014.
According to Manager, the majority of the beneficiaries refund the loans as required and thus enabling the facility to continue carrying out the services to the majority of people in need.
On the other hand, the Director of Mwanga Community Bank, Mr Abby Ghuhia said the loans acquired will help to benefit the customers of the bank mostly entrepreneurs and financial institutions.