Msalala allocates 526mil/- to empower 39 groups

SHINYANGA: MSALALA District Council in Shinyanga Region has allocated 526mil/- in interest-free loans to 39 groups of women, youth and people with disabilities, urging beneficiaries to use the funds for their intended purposes to strengthen their economic activities.

Kahama District Commissioner Francis Mlacha announced this yesterday during a ceremony to hand over loan cheques to the beneficiary groups, stressing the importance of proper utilisation and timely repayment of the funds.

Mr Mlacha commended women’s groups for their good performance in managing the loans but expressed concern over repayment challenges among some youth groups.

“The government, under President Samia Suluhu Hassan, has established a system through which groups receive interest-free loans. I congratulate these groups on successfully completing the initial stages and qualifying for the funds, which will help empower them economically. I urge them to use the money for its intended purpose,” he said.

Msalala Member of Parliament, Mabula Magangila said the loans are financed through revenue collected from council levies, urging residents to take advantage of the opportunity to establish and expand incomegenerating activities.

He encouraged beneficiaries to develop ambitious business projects, including small-scale industries, to strengthen their economic independence.

Msalala District Council Chairperson Mibako Mabubu said the council has continued to strengthen revenue collection and prioritise the allocation of 10 per cent of its revenue to support economic empowerment programmes.

He said the 526mil/- being disbursed covers the first quarter of the 2026/27 financial year. Council Executive Director Husna Toni urged beneficiaries to maintain cooperation throughout the loan period, noting that some groups work together during the application process but experience disagreements when repayment begins.

She cautioned against diverting loan funds to activities outside the approved plans, saying misuse of the money is among the factors contributing to repayment difficulties.

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Msalala District Council Community Development Officer Judica Sumari said the council has planned to allocate more than 831.3mil/- for the programme during the 2026/27 financial year.

“526mil/- has been approved for disbursement to 39 groups, comprising 16 women’s groups, 15 youth groups and eight groups of people with disabilities,” she said.

Ms Sumari said the council is also continuing efforts to recover outstanding loans from groups that previously benefited from the 10 per cent loan programme.

She said more than 537.3mil/- remains outstanding from 74 groups comprising women, youth and people with disabilities.

Meanwhile, two loan beneficiaries, Lucas Makerezi and Rebeka Daudi, separately pledged to use the funds for the purposes outlined in their applications to ensure their projects achieve the intended objectives.

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