UTT dishes out Sh22bn in loans to members

14Feb 2016
Guardian On Sunday
UTT dishes out Sh22bn in loans to members

Umoja Trust of Tanzania Microfinance (UTT Microfinance) dished out Sh22bn in loans to its members last year compared to Sh9 billion it issued in 2014.

UTT Microfinance Chief Executive Officer James Washima.

Speaking at the first annual general meeting since the introduction of three microfinance wings, UTT Microfinance Chief Executive Officer James Washima said that the introduction of such funds had economically enabled members of UTT Microfinance by 98 per cent.

He said the management approved three new companies - UTT Investment Management and Investor Service (UTT AMIS), UTT Project and Infrastructure Improvements (UTT-PID) and UTT Microfinance to transaction with businesses, pensions, company listing consultations so as to unlock idle capital in real estate and infrastructures and micro-lending.

He said until December, last year, the fund had more than 18,000 members who had benefited from investment loans provided by UTT Microfinance compared to 5,000 members who received loans in 2014.

“The launching of UTT Microfinance division is aimed at providing financial solutions to individuals, small and medium entrepreneurs (SMEs) and savings and credit co-operatives (SACCOS),” he said.

Washima said that the microfinance wing would give an opportunity to Unit holders to utilize their own savings in the form of collateral while securing loans to serve other economic purposes.

He said the UTT Super Loan Scheme in the UTT Microfinance wing was designed for micro inance institutions such as SACCOS, SMEs, eligible borrowers and other registered MFIs with a proven performance record to administer loans.

Dr Hamisi Kibola, managing director of UTT Asset Management and Investor Services, said returns on investment per unit were largely for funds that provide a consistent inflow of earnings to the investor on a quarterly basis.
"We have not lost a cent of unit holders since the inception,” he said.

He said in the next ten years in business, he said, it was significant for the company to change with the market environment, adding that the move envisaged ballooning further the return of investment for the unit holders.

For his part, Dr Kamugisha, Chief Executive Officer of UTT-PID, said UTT business expansion was expected to have a multiply effect on the country's economic increase, including socially since the revenue to be generated would be injected into other national development projects.

“The UTT initiative to split the Trust into three companies is expects to accelerate its revenue increase, including benefiting additional unit holders apart from creating job opportunities,” he said.