FINANCE Ministry is planning to come up with a bill that will suggest establishment of Microfinance Act, to administer grassroots’ microfinance institutions including the Village Community Banking (VICOBA). The Deputy Minister, Mr Mwigulu Nchemba, said this yesterday when responding to Ms Assumpter Mshama (Nkenge - CCM), who had wanted to know the time-frame when the government will bring in the House policy or bill that would recognise VICOBA as is the case with the Savings and Credit Co-operative Societies (SACCOS).
He admitted the role played by VICOBA in transforming people’s lives, but the sector is constrained with a number of challenges. In reacting to the challenge, the minister said in 2013; the government employed a consultant from the Economic and Social Research Foundation (ESRF) to review the policy.
“Inception report on the microfinance sector has been completed and it has identified key areas such as achievement, scope, weaknesses and challenges,” the minister said, adding: “After that the government is to prepare a Bill that will lead to having microfinance Act including VICOBA.” He further expressed commitment towards beefing up VICOBA initiatives in an effort to retrieve women from poverty trap. Mr Nchemba made the commitment here when responding to supplementary question by Special Seats MP, Devotha Likokola (CCM), who wanted to know government’s commitment in assisting VICOBA initiatives.
The MP implored the need for the government to ask the Tanzania Postal Bank (TPB) expedite the process of issuing loans to the village banking community. Responding, the deputy minister lauded TPB for coming up with a new product meant to empower women through VICOBA. “The move by TPB to offer loans to VICOBA is commendable and the government will continue supporting the initiatives as it is meant to address poverty in the public cycles.”
He said TPB could succeed in its endeavours because of its good network countrywide. “As government, we’ll work closely with TPB to make its dream a reality and VICOBA members benefi
He admitted the role played by VICOBA in transforming people’s lives, but the sector is constrained with a number of challenges. In reacting to the challenge, the minister said in 2013; the government employed a consultant from the Economic and Social Research Foundation (ESRF) to review the policy.
“Inception report on the microfinance sector has been completed and it has identified key areas such as achievement, scope, weaknesses and challenges,” the minister said, adding: “After that the government is to prepare a Bill that will lead to having microfinance Act including VICOBA.” He further expressed commitment towards beefing up VICOBA initiatives in an effort to retrieve women from poverty trap. Mr Nchemba made the commitment here when responding to supplementary question by Special Seats MP, Devotha Likokola (CCM), who wanted to know government’s commitment in assisting VICOBA initiatives.
The MP implored the need for the government to ask the Tanzania Postal Bank (TPB) expedite the process of issuing loans to the village banking community. Responding, the deputy minister lauded TPB for coming up with a new product meant to empower women through VICOBA. “The move by TPB to offer loans to VICOBA is commendable and the government will continue supporting the initiatives as it is meant to address poverty in the public cycles.”
He said TPB could succeed in its endeavours because of its good network countrywide. “As government, we’ll work closely with TPB to make its dream a reality and VICOBA members benefi
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