State to spend 811bn/- on Magufuli's village development funds

 
The government has planned to spend 811billion/- in the next five years implementing President John Magufuli’s promise to lend each village 50m/- for development purpose.

 

Already the government has started to engage various stakeholders on the best way to dish out the monies to various citizens’ groups throughout the country.

 

Talking during a meeting to discuss the planned modality to release the funds, the executive secretary National Economic Empowerment Council (NEEC), Beng’i Issa, said the government would start to release the money in the next financial year.

 

“As we commence, the money will be released in three phases within a period of five years,” she said over the weekend.

 

The funds would first be released to banks and later given to various groups such as Village Community Banks (Vicoba), SACCOS and Village Savings and Loan Association (VSLA) in the country according to agreed arrangement.

 

According to the plan, the exercise would commence in 10 regions with less financial services (according 2013 Finscope Report).

 

The regions include Singida, Lindi, Mtwara, Mbeya, Shinyanga, Geita, Kagera, Dodoma, Rukwa and Ruvuma. 

 

Opening the meeting, minister of State in the Prime Minister’s Office - Policy, Parliamentary Affairs, Labour, Employment, Youth and the Disabled - Jenista Mhagama said the meeting was aimed at getting stakeholders views on the best way to implement the plan.

 

Talking on her behalf, the acting director of Private Sector Development, Investment and Empowerment in the Prime Minister’s Office, Victor Mwainyekule, said the views would be taken care of in a bid to fight poverty in the country.

 

The head of Operations, Tanzania Women’s Bank (TwB), Zablon Yebete, said the planned programme was a huge investment for Tanzanians that was worth supporting by financial institutions.

 

“This programme involves banks...we will have to make sure that it succeeds in the interests of all,” he said.

 

According to the arrangement, targeted recipients all around the country would receive entrepreneurship skills before getting the funds.

 

The meeting was attended by representatives of district councils, Bank of Tanzania (BoT), Tasaf, banks, pension funds, and Vicoba groups, among others.

SOURCE: THE GUARDIAN