MISSENYI District Commissioner John Wanga has urged residents here to name microfinance entities that operate illegally for the government to take action.

He made the call at the weekend here when he met with a team of experts from the Ministry of Finance who visited his office as part of the ongoing public awareness campaign on microfinance services.

“It is important for citizens to provide cooperation to the government by disclosing firms which engage in provision of loans in their areas, many of which set high interest rates which aim to exploit and hurt borrowers,” he said.

According to Wanga, the government will not hesitate to act accordingly against people found operating microfinance firms without having a licence from the Bank of Tanzania.

 Flavian Nturwa, Missenyi District Community Development Officer, highlighted the need for all coordinators of microfinance services to ensure that they educate people at all levels for them to have deep understanding of loans issues.

“Our people need to be educated on issues of loans, especially what is in the loan agreement and how to avoid signing contracts with difficult conditions, including high interest rates,” she said.

Salehe Hamisi, one of loan service providers, advised that education should also be provided to lenders on how to register their institutions in order to increase the base of microfinance firms that operates legally to further stimulate the country’s development.

Mary Mihigo, Finance Management Officer in the Ministry of Finance reminded people on the importance of spending discipline as well as saving culture.

The team is in Kagera Region to educate residents on financial literacy in Missenyi, Muleba, Bukoba and Biharamulo districts.