Ubungo Municipal Council in Dar es Salaam has released 4.2bn/- from its internal domestic revenues for interest-free loans to small and medium entrepreneurs (SMEs) from the municipality in the current financial year.

Albert Msando Ubungo Municipal Council Commissioner said that since President Samia Suluhu Hassan assumed the top office in March 2021 the released funds that are circulating in the economy through SMEs led businesses in Ubungo Municipality is 14bn/-.

Msando revealed the figures at the weekend in Dar es Salaam while opening a conference to commemorate the 26th anniversary of the death of Julius Nyerere themed ‘VICOBA eliminates poverty and improves family life’ organized by the VICOBA Federation of Tanzania.

According to him, President Dr Samia has directed that 10 percent of all municipalities and districts’ domestic revenues be used in extending interest-free loans to entrepreneurial groups of youth, women and people with disabilities so that they can access capital.

“Ubungo Municipal Council hosts over 300 VICOBA groups which are part of the beneficiaries of the 10 percent interest-free revolving loans. The government recognizes VICOBA as an important institution in building an inclusive economy,” said Msando.

He said that through the Business Blue Print of 2019 R.E 2022, the government has waived over 300 nuisance levies since President Dr Samia assumed the top office in March 2021.

Msando said that the government has always been ready to collaborate with the citizens in solving their business-related challenges including formalizing areas for SMEs. He invited VICOBAs to take advantage of the interest-free loan opportunity to access funds to grow their members' businesses.

In his speech to address over 200 VICOBA members who attended the conference, Bosco Ndelwa, VICOBA – FETA Chairperson said that VICOBAs goes down to a long history of the country’s struggle to self-reliance.

He said VICOBA are registered across all 26 regions of Tanzania Mainland, all 184 districts and 11,956 villages and streets.

“There are 52,425 registered VICOBAs with a total of 1,467,900 active members and a cash flow for each group approximated at 1.5m/- per month;

Thus, VICOBAs in the country in total have a cash flow valued at 7.9bn/- transforming the lives of VICOBA members to the better,” said Ndelwa.

He asserted that the CCM Election Manifesto for the Year 2010 - 2015, stated under Section 80 that the government shall encourage the youth to establish economic projects and income generating activities through SACCOS and VICOBAs.

“The results are oblivious as this sector is today recognized by the Microfinance Services Act No. 10 of 2018. However, to improve leadership, coordination of our activities and communication at district, regional and national levels, we now have the VICOBA Tanzania Federation,” said Ndelwa.

He recalled the good will of the current regime that in 2003, President Dr Samia, when she served as a Minister within the SMZ government, extended soft loans to 11 VICOBAs each earning 1m/-.

"On behalf of VICOBA members I thank President Dr Samia for her willingness and dedication in facilitating entrepreneurial businesses. We can feel the efforts of her government in economically uplifting various unprivileged social groups," said Ndelwa.