Entrepreneurs challenged on business strategies

THE National Economic Empowerment Council (NEEC) has advised local entrepreneurs, particularly dealers in agricultural produce, to prepare a documented programme of their activities throughout the year to facilitate a suitable flow of credit facilities.

“Prepare the document that shows the kind of business you are doing at particular periods and the amount of loans that you require…that would help even your financiers to know the best time to avail you with appropriate amount of funding,” NEEC Board Chairman Emmanuel Kamba told entrepreneurs in Mtwara over the weekend.

Mr Kamba, NEEC Executive Secretary Dr Anacleti Kashuliza and some senior officers of the council were on a two-day visit of the Savings and Credits Cooperatives Societies (SACCOSs) that operate in Mtwara region.

During the visit the council also launched certification of the best performing SACCOSs from Mtwara and Lindi regions. At Washami SACCOS, the chairman and his entourage heard that the group members were sometimes forced to incur huge but unnecessary financial costs by taking loans and keeping them idle waiting for their business seasons due to fears of securing the credit facilities at the right time.

The group vice-chairman Mohamed Katindi said: “There is no certainty on the flow of loans…the situation forces our members to take loans not because they want but when the loans are available.”

He cited an example of cashew nut dealers who have applied for loans now even though the cashew nut business starts in October, “They have to keep the fund idle for almost four months, which is bad for business—but there is no option because if they decide to avoid paying interest in idle loans they have to risk not getting the loans at all when the season starts and that is even worse.”

Washami SACCOS is one of the best performing groups that have received financial support from the empowerment council through CRDB bank. The group members however decried delays by CRDB bank even when they have repaid all the previous loans.

The SACCOS, through the CRDB bank has so far received loans amounting to 170m/- from NEEC. Mr Kamba said with the document showing the business activities through out the year, the SACCOS can arrange with the council and CRDB bank on the best way to rescue entrepreneurs from the financial doldrums.

Dr Kashuliza commended Washami members for their diligence uses and timely repayment of the loans, challenging them to embrace the council’s certificate of recognition as a morale booster to perform and achieve more in their drives to eradicate poverty.

Washami members appreciated for the funding boost from the council, saying through the credit facility, they have expanded their business. Fatuma Awadhi said: “I took the loan, which I used to expand my business and I am financially stable now…my plea is to have this facility sustained.”

The group, which secured registration in December 2001, started with 22 members, owning 110,000/- worth of shares and 330,000/- in savings. It has grown over the years, attracting 509 members mostly traders who own about 13m/- in shares and over 59m/- in savings.