Dodoma — THE government's move to establish WEZESHA, a digital system that enables clients to apply for loans, process applications, disburse funds, monitor activities and track repayments, has yielded positive results in the provision of 10 per cent loans.
Deputy Minister of State in the Prime Minister's Office-Regional Administration and Local Government, Dr Festo Dugange said this in the National Assembly in Dodoma yesterday, insisting that the initiative has increased transparency, accountability and recordkeeping.
He added that the use of banks in lending and managing these loans has also begun in 10 pilot councils, where banking systems have been integrated with the WEZESHA system.
He explained this while responding to a question from Special Seats lawmaker Jesca Mbogo, who sought to know the government's plan to monitor, improve and ensure transparency in the provision of the 10 per cent loans so that they reach intended beneficiaries.
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"Laws and guidelines emphasise six weeks of training before loans are granted (one day each week) to enable group members to know each other and for experts to better understand them. Furthermore, training and follow-up have been emphasised during implementation of group activities," he explained.
He informed the House that the improvements have started to show results, noting that from July 2024 to December 2025, 174 councils were authorised to issue loans amounting to 253bn/-.
During that period, 230.66bn/- was disbursed, equivalent to 91 per cent of the targeted amount over two years.
Repayments stood at 100.27bn/-, equivalent to 82 per cent for loans within the due period.
He added that 10 councils allocated 34.12bn/-, of which 3.69bn/- (11 per cent) was disbursed to groups through banks, with repayments amounting to 813m/-, equivalent to 22 per cent.
"In addressing challenges in the implementation of the 10 per cent loan scheme, including monitoring and transparency, the Government has introduced systemic improvements from the 2024/25 financial year, focusing on strengthening loan provision, management and monitoring through technology, capacity-building and an electronic system for applications, disbursement and repayment tracking," he said.
