THE government has hailed Vicoba groups for financial discipline in repaying loans, which has helped them to win trust of the financial institutions.
The Minister of Finance and Planning, Dr. Phillip Mpango said in Dar es Salaam yesterday, that the state of banks in lending VICOBA groups is now good for the development of social and investment activities.
"The discipline of loan repayment in groups is impressive reaching to 95 per cent which attracts banks and financial institutions that were previously reluctant but the scenario has now changed," he said during the International Poverty Eradication Day celebration which is the national Day of VICOBA.
The national vicoba day is marked on 17th October every year which is International Poverty Eradication day.
For this year, activities of the day included exhibitions for entrepreneurs to display their various products for three days at Mnazi mmoja grounds in Dar es Salaam. They were coordinated by the National Economic Empowerment Council (NEEC).
Dr Mpango said that banks and financial institutions in the past were not willing to lend to VICOBA due to doubts on payback, but the situation has changed.
Dr. Mpango said the government recognises VICOBA and is enrolled in the councils and their information is available at the village level, district, regional and national level.
And also the new financial services policy in 2016 has officially recognised the groups and the law to implement the policy will be finalised this financial year.
The Chairman of Board of the National Economic Empowerment Council (NEEC), Dr. John Jingu said VICOBA is a source for people to lend money to each other and to foster the economic and social development.
"In the VICOBA product exhibition we have seen good products but also there is need to increase quality for domestic and overseas market," he said. There is a need for more emphasis on expanding business because they are small and less profitable, he added.
He said the council wants their businesses to achieve more benefits so that they can contribute to poverty alleviation. The council will continue to coordinate groups and ensure their businesses are moving into small industries, and the good thing the banks have begun to provide machinery equipments for processing.
He said Tanzania has the problem of increasing crops value generated in the country, but the government's policy is planning for achieving the industrialisation economy starting with small industries to medium and large.
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