President Jakaya Kikwete has urged financial institutions to confidently extend credit to local entrepreneurs and refrain from fears that the money would not be paid back.
President Kikwete made the statement yesterday when inaugurating a cashew nut processing factory.
He said the banks? lending fears were immense and if they persisted, they would deter the country`s development as people wouldn`t be able to secure loans.
`The apprehension is forcing most banks to keep their money rather than lend it. I urge them to relax their loan conditions,` he said.
The President said international tycoons like Bill Gates had got their wealth through lending from financial institutions and not otherwise.
He challenged local entrepreneurs to come up with vibrant and viable business plans that would be accepted by the banks.
`Good business plans encourage bankers to dish out loans,` he said.
President Kikwete said there was a need for farmers to improve the quality of their produce so as to secure the best prices available.
He said cashew nut processing factories would maintain their operations only if farmers were highly sensitized to grow the cash crop.
Earlier, the factory`s Board Chairman Adrian Mpande said factories needed modern machines that would help cut down production costs and improve quality of the processed product.
He said accessing loans was a problem that dented business prospects as entrepreneurs failed to acquire modern machinery.
`I appeal to the government to continue extending its support so that we may excel,` he said.
SOURCE: Guardian
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