A Big part of the money issued as loans by the government did not reach the intended beneficiaries hence its impact is not seen in the development of the economy, the Parliament was told here on Monday.
Presenting a statement on the implementation of the Prime Minister’s Offices Vote No 37 – titled Empowerment and Investment for the years 2011/12 and 2012/13 Budget Estimates, Deputy chairman of Parliamentary Committee on Finance and Economic Affairs Dunstan Kitandula said the financial sector is another area which deserves to be given priority for improvement of the economy.
He said despite the fact that there has been an increase in the loans issued to private sector operators, a big part of the money did not reach the ordinary people.
According to him such loans go with big interest rates which deter ordinary citizens to access and hence have been retarding development.
“Our committee advises the government to be keener in loan issuances to private sector by directing it to lower income groups instead of few businesses,” he said.
He recommended the government to assess the value of money issued through various funds in order to see whether if it reached the target and borrowers.
Kitandula also said a big number of Tanzanians have not benefited from the various government empowerment programmes.
He mentioned the programmes as National Economic Empowerment Fund, National Entrepreneurship Development Fund, the Youth Development Fund, Presidential Trustee Fund, Small Entrepreneurs Loans Facility (SELF), Export Credit Guarantee Scheme and Small and Medium Enterprises Credit Guarantee Scheme.
“All the mentioned funds and others which are aimed at improving the people’s livelihood have failed to do so because of poor management,” he said.
He noted that some funds have meager capital while others are managed by unqualified personnel who do not have entrepreneurial skills.
“The committee urged the government to make follow-ups so as ensure that all programmes execute their activities as intended,” he added.
He also urged the government to implement its agreement with the African Development Bank (AfDB) in order to come up with some more development programmes.
Citing, he said, it was agreed that the SELF project had to be independent institutions, but up to the moment nothing has been done to render them so.
“The government’s reluctance on this issue has denied the project to access more money from the bank, hence reduce its capacity to support more people,” he stated.
The committee chairman also insisted on the government to provide information regarding various economic programmes being implemented countrywide.
On fishing, he said, the government has to implement all programmes for the sector which would empower the people economically.
The government pledged to dish out USD600,000 for special patrols on Lake Victoria, the purchase of two patrol boats for the Indian Ocean Economic Zone, construction of a fish lab at Kurasini in the city and rehabilitation of two research fishing boats.