The Prime Minister of the United Republic of Tanzania, Kassim Majaliwa, announced that in the fiscal year 2024/2025, the Government has allocated TZS 787 billion for loans to 250,000 students, including 80,000 new undergraduate students.
He made this statement on Friday, June 28, 2024, in Parliament in Dodoma while delivering a speech to adjourn the 15th Parliament session until August 27 of this year.
“Preliminary preparations have begun, including distributing guidelines for loan allocation and disbursement, opening the loan application window for the year 2024/2025 for 90 days from June 1 to August 31, 2024, and providing education to loan applicants and other stakeholders,” said Majaliwa.
He mentioned that in the fiscal year 2023/2024, the Government provided loans to 224,056 higher education students, and by June 2024, these students had received loans worth TZS 743.2 billion, equivalent to 94.6% of the allocated funds.
These loans were allocated for students pursuing diplomas, first degrees, postgraduate diploma in legal practice, master’s and doctoral degrees, and the Samia Scholarships for studies in Science, Technology, Engineering, and Mathematics (STEM).
Regarding loan repayment, the Prime Minister stated that the Loan Board has continued to collect matured loans from beneficiaries, with the Government targeting to collect TZS 230 billion in the year 2023/2024. By May 2024, TZS 161 billion had been collected, representing 70% of the target.
To enhance loan collection, the Prime Minister said the Government has implemented several strategies, including reminding employers to submit the names of beneficiaries within 28 days of employment, collaborating and integrating systems with strategic partners such as NIDA, TRA, private institutions both domestically and internationally, conducting campaigns to expose beneficiaries, educating through social media, and conducting monthly audits for public and private sector employers.
In another development, explaining the loan system derived from local government revenues, the Prime Minister said the Government has completed preparations for coordinating the transfer of 10% loan funds in Local Government Authorities to group loan funds and overseeing the repayment of loans disbursed in previous years.
“It will be recalled that in April 2023, the Government halted the disbursement of 10% loans for women, youth, and people with disabilities. By the end of this fiscal year 2023/2024, the Government has completed preparations for coordinating the transfer of 10% loan funds in Local Government Authorities to group loan funds and overseeing the repayment of loans disbursed in previous years,” PM Majaliwa explained.
The Prime Minister stated that in the fiscal year 2024/2025, the Government plans to disburse TZS 228 billion in loans, of which TZS 63.7 billion are recovered funds from previously disbursed loans, TZS 63.2 billion are budgeted loan funds, and TZS 101.1 billion are projected collections from local revenues for the year 2024/2025.
Providing further clarification, the Prime Minister said the Government has planned to use banks for 10 pilot Local Government Authorities, which are the cities of Dar es Salaam and Dodoma, the municipalities of Kigoma Ujiji and Songea, the towns of Newala and Mbulu, and the districts of Siha, Nkasi, Itilima, and Bumbuli.
He added that the remaining 174 councils will use an improved system, including the establishment of a loan management unit for women, youth, and people with disabilities in the President’s Office – Regional Administration and Local Government (TAMISEMI), and the establishment of loan management committees at the levels of District Commissioner Offices, Councils, and Wards.
