The initiative was funded by the German International Development Agency, (DSIK).
Dodoma. A total of 746 members of Savings and Credit Cooperative Societies (Saccos) have benefited from loans provided by a revolving fund which seeks to support individuals whose businesses were adversely impacted by the COVID-19 pandemic.
The Credit Rotation Fund (CRF) was launched in September 2021 by the Savings and Credit Cooperative Union League of Tanzania (SCCULT) as part of the cooperative sector strengthening project.
The initiative was funded by the German International Development Agency, (DSIK).
Speaking during the project handover, DSIK resident director, Mr Stephen Safe revealed that the fund initially received Sh270 million as seed capital but has since grown to Sh1.236 billion over a period of three years.
“DSIK provided SCCULT with Sh270 million as a non-refundable grant to facilitate loans for members affected by the pandemic and to support income-generating activities,” said Mr Safe.
SCCULT chief executive officer, Mr Hassan Mnyone, commended the project for revitalising services offered to members and helping restore confidence in the league.
“The restoration of trust in the league has been crucial, not only in terms of internal operations but also in fostering relationships with stakeholders. One of the key drivers of the regained trust has been the CRF loans,” he said.
The guest of honour at the event, assistant registrar of the Cooperative Development Commission (TCDC), Mr Josephat Kisamalala, said the project had been instrumental in addressing the loan challenges faced by Saccos.
He noted that many cooperatives had struggled to access loans prior to the CRF initiative.
“I remember one teachers’ Saccos that had lost hope and ceased financial operations. Thanks to this project, it is now one of the top-performing Saccos in the country,” said Mr Kisamalala.
However, he acknowledged that smaller cooperatives continue to face leadership challenges.
