Citizens Urged to Budget

Citizens of Ruangwa District in Lindi Region and other areas of Tanzania have been encouraged to develop the habit of budgeting their money when they sell crops or engage in any business to ensure the funds are used effectively for development activities and to increase their capital.

This advice was given by Mr. Salim Khalfan Kimaro, the Chief Financial Officer of the Financial Sector Development Department at the Ministry of Finance, during a financial education seminar for various groups of citizens in Lindi. A team of experts from the Ministry of Finance provided the training.

“We need to save the money we earn from various economic activities, including agriculture, livestock, entrepreneurship, and business, instead of wasting it on unnecessary expenses like celebrations and ceremonies, which can lead to poverty despite receiving significant income from our daily activities,” said Mr. Kimaro.

He added that saving money can help avoid “bloodsucker” loans, which involve borrowing from informal lenders who provide small amounts of money but demand large quantities of produce in return, disproportionate to the loan.

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He also urged all citizens nationwide to continue saving their money during the current season and to set aside a portion for financing the next production cycle.

One beneficiary of the financial education, Ms. Merryness Mutayabarwa, a resident of Ruangwa, requested the government to consider providing equipment such as capital assets instead of cash to assist with their economic activities, like incubators for chicks, tractors, and livestock.

“If we receive cash, it can be misused, making it difficult to repay, as money can easily be diverted by someone untrustworthy. However, if we are given equipment like tractors, dairy cows, and various machines, it becomes easier to produce and allows us to repay the loans because there is a guarantee of production,” said Ms. Mutayabarwa.

Additionally, the Community Development Officer for Ruangwa District, Mr. Mwinyi Jalala, emphasized the importance of citizens in Ruangwa repaying their loans on time to allow others to access the funds.

The Ministry of Finance continues to provide financial education to various groups in Lindi Region, covering six districts: Ruangwa, Liwale, Nachingwea, Mtama, Kilwa, and Lindi Municipality. This is part of the implementation of directives from the President of the United Republic of Tanzania, H.E. Dr. Samia Suluhu Hassan, to ensure that every citizen has access to financial literacy on microfinance services.