The Ministry of Information, Youth, Culture and Sports through its Youth Development Department has reviewed youth loan rules and regulations to enforce repayment.
Director of Youth, Prof Elisante Ole Gabriel
The Director of Youth, Prof Elisante Ole Gabriel, told a news conference in Dar es Salaam that the move was aimed at ensuring that the youth development fund was revolving and benefiting many of them.
He said the move follows challenges that were faced between 2009 and 2012, where the government issued 1.2bn/- to the youth fund, but as of March, last year only 61.5m/- was repaid.
To ensure that the tendency does not continue, the government has set aside 6.1bn/- for the youth development fund which will benefit young people between 15 and 35 years, who would adhere to the new rules.
He outlined some of the revised rules as the youth has to be in a registered group of not less than ten people, whom have to be enrolled in Vijana Saccos established in every district countrywide.
The money endorsed during the ministry’s 2013/14 budget does not need the youth to have immovable assets as guarantee, but they need to be cleared by their respective village chairpersons and ward councillors.
“Since the fund needs to be revolving, we have decided to set up new rules as opposed to the previous ones where some people benefited and decided not to repay and walked away free,” he said. Prof Gabriel said with the new format, the government can trace and take to court those who do not want to honour their loans repayment schedules.
The ministry, he said, is prepared to issue a maximum of 10m/- loan to be paid in two years with a three month grace period from the date it received the loan. However, he said, the amount may increase depending on the group’s project write up as beneficiaries will have to pay a 10 per cent interest.
Prof Gabriel called upon youth to change their mindset and go for positive strategic thinking if they are to succeed in their mission.
The ministry spokesman, Mr Godlease Malisa, said according to statistics 1,200,000 young graduates enter the labour market annually but only 200,000 are being employed.
He therefore challenged them to use the opportunity and acquire loans and become self employed saying unemployment amongst youth countrywide is now 14.4 per cent.
By NELLY MTEMA, Tanzania Daily News
