The UN Capital Development Fund (UNCDF) has extended a credit of Sh226 million to Sengerema district council to boost the local authority’s capacity to provide loans to top local entrepreneurs.
UNCDF supports least developed countries in their effort to achieve the Millennium Development Goals through a variety of innovative approaches including microfinance.
According to Sengerema district council community development officer, Mr. Lameck Butoto, 4,617 entrepreneurs have so far secured over Shs. 667.7 million in loans from the council.
Mr, Butoto, coordinator a shop to the entrepreneurs, has told Vice President Mohammed Gharib Bilal who was touring the district that entrepreneurs have been borrowing capital for investment in their ventures since 2009 when UNCDF issued the funding to the district council.
He said 2136 of the fund beneficiaries were women. “Beneficiaries from 229 economic groups in the district are required to pay back the loans with a 1o percent interest within six months and over Sh 449.4 million, equivalent to 91percent has been paid back”.