Dodoma — WOMEN'S empowerment groups across the country have secured a staggering 136.01bn/- under the government's 10 per cent local government loan scheme over a 21-month period, smashing the state's original disbursement targets.
Deputy Minister in the Prime Minister's Office (Regional Administration and Local Government), Dr Festo Dugange, said in Parliament yesterday that between July 2024 and March 2026, the government initially planned to allocate 112.29bn/- to women's groups. The actual disbursement reached 136.01bn/-, representing an exceptional 121 per cent performance rate.
Dr Dugange explained that women outperformed other beneficiary categories namely youth and people with disabilities partly due to a strategic regulatory loophole.
"Amendments to the regulations now allow funds allocated to one beneficiary group to be transferred to another if they remain unutilised during a given quarter," the Deputy Minister noted, pointing to the high demand and strong organisation among women's groups.
Keep up with the latest headlines on WhatsApp | LinkedIn
Despite the booming figures, the loan scheme faced intense scrutiny in the House regarding its accessibility for rural populations.
Special Seats Member of Parliament, Dr Neema Majule (CCM), pressed the government over complaints that rural women are being left behind by the scheme's heavy reliance on technology and formal banking channels. Loans are currently managed entirely online via the WEZESHA Portal.
"There have been complaints from women, particularly those in rural areas, who are unable to access electronic devices and are therefore being left out of the process, making it difficult for them to benefit from these loans. I would like to know what measures the government has put in place to assist these people," she said.
The MP also wanted to know why the government decided to provide the loans through banks, while knowing clearly that the process to get loans through banks were unfriendly to many people under informal sector and in particular women in rural areas.
In response, the deputy minister said the government is currently using community development officers, village executive officers (VEO) and other government officials to each out to women and other people in rural areas who qualify for the loans and help them to access the system.
He said the government has decided to use WEZESHA Portal to control dishonest and mismanagement of loans.
On providing loans through banks, the deputy minister said the government wanted use the experienced institutions in providing loans after experiencing difficulties in the first road.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"So far, we are doing fine with banks, we picked few district councils for a pilot study and the situation is satisfying. The government will conduct an assessment and come up with the way forward on the process," he said.
Earlier, the MP wanted to know what the government was doing to ensure the loans each woman in rural areas.
The deputy minister responded that the 10 per cent loans are provided through the electronic WEZESHA Portal, which enables special groups, including rural women, to apply for loans in a timely manner.
He said the government is continuing to oversee the provision of these loans, with Ward and Village Executive Officers assisting rural residents, particularly women, to register and submit their applications.
"This arrangement enables even those with limited ICT knowledge or without communication devices to access the service more easily," he said.
"To strengthen transparency and ensure that the intended beneficiaries receive the loans, all applications undergo verification starting at the Ward Development Committee (WDC) level. This process ensures that the groups approved for loans are genuinely based in the respective rural areas and prevents the misuse of rural addresses by ineligible groups."
He said this indicates that women's groups have received more loans than youth and people with disabilities, largely due to amendments to the regulations that allow funds allocated to one beneficiary group to be transferred to another group if they remain unused during a given quarter.
