Special groups in Mpanda Municipal Council have been urged to seek professional advice on loan usage to make informed and strategic decisions that maximise returns while minimising risks.
Mpanda District Commissioner Ms Jamila Yusuf emphasised this point, noting that the council is set to disburse 10.01bn/- this financial year to women, youths and people with disabilities.
"Seeking professional advice ensures that the loan is allocated to investments likely to generate consistent income streams or long-term capital gains, making it easier to meet repayment obligations without financial strain," she said.
The government's goal in directing each council to allocate funds for interest free loans is to improve the lives of the beneficiaries.
These loans are crucial as they provide essential financial support to underserved groups, including women, youths and people with disabilities, enabling them to access capital that can drive entrepreneurship and economic growth.
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She advised recipients to focus on their ideas and engage in profitable businesses to repay the loans, thereby increasing their income and improving their living standards.
"It is not a grant. It is a loan meant for borrowers to achieve the best results," she emphasised.
Ms Yusuf further stated that her office would collaborate closely with the district council to ensure the proper use of the funds. Both the district office and the municipal council are well-organised and committed to preventing any misappropriation of these resources.
Additional education will be provided to beneficiaries before the loans are disbursed to minimise the risk of loss. Mpanda Municipal Mayor Mr Haidary Sumry added that the funds are part of the 10 per cent internal revenue policy aimed at providing financial assistance to underserved groups.
In response to previous challenges, including low repayment rates, the government has overhauled the 10 per cent revenue-based loan system and is rolling out a pilot phase in 10 local councils.
The government is targeting a total disbursement of 227.96bn/- in the 2024/25 fiscal year, facilitated by a new digital system called the Wezesha Portal to streamline loan applications.
