DODOMA: INADEQUATE financial literacy has been identified as one of the key factors affecting repayment of loans issued to women and youth groups, prompting efforts to strengthen training and supervision mechanisms to ensure the sustainability of empowerment funds.
Minister of State in the President’s Office (Youth Development), Mr Joel Nanauka, told the National Assembly yesterday that the government has introduced new guidelines aimed at improving the management, coordination and monitoring of loans issued through local government authorities.
Mr Nanauka said the guidelines, issued in November last year, emphasise the importance of providing entrepreneurship and financial management training to beneficiaries before loans are disbursed.
“As a ministry, we entered into special agreements with financial institutions and non-governmental organisations to ensure such training is provided before loans are issued,” he explained.
The minister was responding to a supplementary question from Cecilia Paresso (Special Seats-CCM), who sought to know the measures put in place to ensure the sustainability and productivity of businesses financed through the 200bn/- women and youth empowerment fund launched by President Samia Suluhu Hassan.
Mr Nanauka noted that the government was working closely with community development officers stationed in councils across the country to ensure women and youths receive timely information, training and follow-up support.
He explained that through the ministry responsible for youth development, youth development officers, councillors and Members of Parliament have continued conducting public meetings to ensure people are fully informed about available loan opportunities and procedures for accessing them.
“Women are being given priority in empowerment programmes in line with the Youth Development Policy and broader government priorities,” the Minister stressed.
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Responding to a basic question by the MP on when women entrepreneurs in Arusha Region would benefit from the 200bn/- concessional loan facility announced by the President, Mr Nanauka said the government recognises the important role played by women in driving economic growth and national development.
He said women from Arusha Region are among beneficiaries expected to access the funds through various government empowerment programmes and sectoral financing schemes.
According to the minister, apart from funds allocated through the Ministry of Community Development, Gender, Women and Special Groups, women are also benefiting through sector ministries and the Youth Development Fund under the President’s Office.
“In the first phase of implementation, 147 young women from Arusha Region are expected to benefit through the Youth Development Fund, with loans scheduled to be issued at the beginning of June 2026,” the Minister explained.
Mr Nanauka added that the government will continue expanding access to concessional loans through existing systems and procedures to enable more women and youths to engage in productive economic activities and contribute to national economic growth.