MWE Correspondent
The Government of Tanzania has released a total of 10.5 billion shillings to support small-scale traders across the country through low-interest loans, marking a major milestone in the first 100 days of President Samia Suluhu Hassan’s second term under the Sixth Phase Government.
The funding initiative is aimed at strengthening grassroots entrepreneurship, improving household incomes, and accelerating inclusive economic growth, particularly among low-income earners who form the backbone of Tanzania’s informal economy.
Speaking on Sunday, January 25, 2026, at Mtumba area in Dodoma City, Minister for Community Development, Gender, Women and Special Groups, Dr. Dorothy Gwajima, said the loans are designed to empower small traders to expand their businesses and increase productivity.
She revealed that out of the total allocation, 1.35 billion shillings has already been disbursed to 588 small traders, with the rollout continuing in various regions nationwide.
“This program is part of the government’s broader strategy to economically uplift citizens, especially women, youth, and vulnerable groups who depend on small businesses for survival,” Dr. Gwajima said.
The loans are being offered at a highly subsidized annual interest rate of seven percent, a move intended to ease financial pressure on borrowers while encouraging sustainable business growth.
According to the minister, many small entrepreneurs in Tanzania struggle to access formal financing due to high interest rates, lack of collateral, and limited financial literacy. The new funding scheme seeks to bridge that gap by creating a more inclusive credit system.
“Affordable credit is a powerful tool. When small traders are supported, they invest in stock, create jobs, and strengthen local economies,” she added.
Government officials say the program aligns with Tanzania’s long-term development agenda, which prioritizes poverty reduction, private sector growth, and financial inclusion. It also complements ongoing efforts to formalize small businesses and integrate them into the national economy.
Also Read; Senegal Prime Minister to Visit Morocco After AFCON Final
Economic analysts have welcomed the initiative, noting that micro-entrepreneurs play a critical role in employment creation across Africa. According to development experts, targeted funding programs such as this one can significantly boost productivity if accompanied by business training and market access.
Several beneficiaries who received loans in Dodoma expressed optimism, saying the funds would help them restock goods, expand operations, and stabilize their income.
“This loan means I can finally grow my business instead of just surviving day by day,” said one small food vendor at the event.
The government has assured the public that transparency and accountability mechanisms are in place to ensure the funds reach intended beneficiaries and are used productively.
Officials also hinted that additional financial empowerment programs could be introduced in the coming months as part of broader economic reforms under the Sixth Phase leadership.
