Set up entrepreneurs' bank, MP demands

The Government has been challenged to establish an entrepreneurs’ bank that will be supporting them. In a basic question, Dr Henry Shekifu (Lushoto-CCM) wanted to know the government’s plans of empowering   entrepreneurs and other small groups that are in need. Responding, the Minister of State President’s Office Coordination and Relations, Dr. Mary Nagu said that the government has been empowering entrepreneurs and small groups through its economic empowerment policy of 2004, and the Economic Empowerment Act No6 of 2004.

Dr Nagu said the citizenry’s economic empowerment policy of 2004 has clearly identified the aim of the government in putting up a conducive environment in accessing credit by improving sources of reserves and taking various measures to ensure banks lend available deposits accordingly on low interest rates.

She said following the establishment of the policy, various basket funds have been established to enable citizenry borrow easily. These basket funds sponsor small and middle entrepreneurs under the supervision of the Bank of Tanzania (BoT), the minister noted. The programme of empowering the citizenry by increasing employment, has brought about citizenry economic empowerment funds like the Small Entrepreneurs Loan Facility (SELF), the Youth Development Fund and the Women Development Fund, among others.

After realizing the challenges facing small entrepreneurs when they seek loans from commercial financial institutions, the government decided to establish the women’s bank and the Tanzania Agricultural Development Bank, she pointed out.  It also opened a small agriculture window at TIB Bank as a way of enabling small entrepreneurs to obtain loans, she said.

Meanwhile, Dr Nagu said the government through BoT was negotiating with other private institutions offering financial services to loosen conditions of lending including high interest rates.

In a supplementary question, David Silinde (Mbozi West-CHADEMA) urged the government to reallocate the TASAF Tsh 80bn set aside for poor people to be directed to empowering the youth, who form over 60 percent of the Tanzanian population.