Speaking in Kigamboni this week, Deputy Minister in the President’s Office responsible for Regional Administrations and Local Governments, Josephat Kandege said many big manufacturing companies dominating the market currently started as small businesses.
Kandege said President Magufuli’s government deliberately issued the Machingas identity cards so that they should become formal business entity with access to credit facilities while also contributing to state revenue.
“It is important that CRDB and Kigamboni District authorities make sure that this exercise is sustained with graduates moving up to the next level while more enter the formal group,” the Minister said when officially kick-starting the CRDB SimAccount digital loan facility backed by 10bn/- of ‘Jiwezeshe’ loan scheme.
He pointed out that since the government started the ID issuing exercise to petty traders, over 1.8m have been dished out while many more keep applying for the cards. “As government, we are encouraging this exercise because it is also a vehicle for self employment by youth in a market where jobs are not easy to come by,” the Deputy Minister added.
Backing Kandege’s observation, Bank of Tanzania Deputy Governor, Dr Bernard Kibese urged CRDB to ensure that the number of its SimAccount digital loans recipients increase from the current 3,000 to at least 10,000 next year.
“CRDB has shown that it is possible to lend to petty street vendors which tallies well with its image as a truly public bank,” said Dr Kibese who further noted that millions of hawkers countrywide are waiting for a slice of CRDB ‘Jiwezeshe’ concessional loans hence the need to increase the 10bn/- budget.
Speaking at the same ceremony, CRDB’s Managing Director, Abdulmajid Nsekela said ‘Jiwezeshe’ SimAccount loans will be issued digitally without requiring borrowers to physically visit the bank’s branches for endorsement.
“These loans will be issued through the borrowers’ mobile phones without any hassles,” Nsekela said pointing out that loan amounts range between 10,000/- and 500,000/- with no interest rate charged but an administrative fee of between 500/- and 2,000/- upon repayment.
He said all that the Machingas need is to register themselves on CRDB’s SimAccount with particulars indicated on their ‘Vitambulisho vya Magufuli’ cards.
Kigamboni District Commissioner, Sara Msafiri mobilised her district’s petty traders to seize the CRDB opportunity and use the cash to build factories and big companies. “Let’s make use of this loan facility to develop our district’s economy,” Msafiri urged.