KAHAMA: SMALL traders and entrepreneurs are struggling to access government backed loans despite billions of shillings set aside to support their businesses, raising concerns over low uptake and existing barriers.
Officials state that out of 200bn/- allocated nationwide for interest-free loans, only 12bn/- has so far been disbursed, pointing to challenges in accessing the funds, particularly among informal traders.
Speaking during a meeting with entrepreneurs in Kahama District, the Chama cha Mapinduzi (CCM) Secretary for Political Affairs, Relations and International Cooperation, Rabia Hamad, called on business owners to organise themselves into groups to qualify for the loans provided through local councils and financial institutions.
“Under President Samia Suluhu Hassan leadership, she has created favourable conditions for entrepreneurs to access affordable financing, including partnerships with banks such as NMB,” she stated.
However, officials acknowledge that strict requirements continue to limit access for many potential beneficiaries.
Speaking on behalf of the Permanent Secretary in the Ministest of Community Development, Gconcludeer, Women and Special Groups, Ms Slylivia Lusumo stated traders must be formally registered and have an annual turnover not exceeding 4m/- to qualify.
She stated that in Shinyanga Region, 255m/- has been allocated, benefiting 124 traders, out of 1,556 registered traders, of whom only 750 have been verified in the system.
“To obtain a loan, a trader must be registered and possess a valid identification card,” she stated, emphasising the necessary for proper identification to improve access.
At the council level, Kahama Municipal Community Development Officer, Mr Khamis Mnubi, stated 3bn/- has been allocated for the 2025/2026 financial year, with 1.1bn/- already disbursed to 57 groups in two phases between July and December.
Despite these efforts, traders state structural challenges continue to lock out many potential beneficiaries.
Speaking on behalf of the Kahama District Machinga Union (SHIUMA), Mr Barnaba Mazengo stated many street vconcludeors are unable to qualify for loans becautilize they lack permanent business premises, including kiosks required for registration.
He added that although Kahama supports trade activities linked to eight countries, the absence of a designated trading area has left many tiny traders operating informally and unable to meet loan conditions.
The cost of acquiring a kiosk, estimated at 50,000/-, payable within six months, remains out of reach for many traders with limited capital.
The situation highlights the gap between policy intentions and implementation, as the government continues efforts to expand financial inclusion and empower tiny-scale entrepreneurs across the countest.
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