SACCOS WANTS TO ADMINISTER JK EMPOWERMENT FUNDS

Saccos wants to administer JK empowerment funds
DAILY NEWS Reporter
Daily News; Tuesday,September 18, 2007 @00:03

THE Savings and Credit Co-operative Union League of Tanzania (1992) Limited (SCCULT) has said that it was ready and competent enough to offer soft loans through regional empowerment funds popularly known as ‘JK empowerment fund’ if cleared by central bank (BoT).

SCCULT Executive Secretary Abdul Mshaweji told the 'Daily News' in Dar es Salaam yesterday that BoT has already made assessment of SCCULT ability and trained its staff.

“We are competent enough to offer such service and what we are waiting for is a green light from the central bank after their assessment,” he said.

According to the SCCULT boss, after the assessment the bank had provided special training to 47 staff of the union.

When contacted for comment, an official with the central bank’s Credit Scheme Department who preferred anonymity said; “This is purely an internal matter”.

He said the public would be notified of the matter at a later stage.

SCCULT on several occasions has decried high interest rates charged by commercial banks saying they would not be able to improve the living conditions of the majority poor whose life relies on less than a dollar per day.

It says transforming the social and economic status of millions of Tanzanians would depend on strengthening of Savings and Credit Co-operatives (SACCOs).

Last year the government through its regional empowerment funds set aside 21bn/- to promote budding entrepreneurs in the country. Each region was allocated 1bn/-.

Two commercial banks – the National Microfinance Bank and CRDB Bank -- were given the task to issues the loans under empowerment fund arrangement.

SOURCE: DAILY NEWS