Financial institutions urged to relax loan requirements

Dar es Salaam. Financial Institutions have been called upon to relax loan requirements and loan interest rates to allow a number of youth access the funds and help them participate in business and other economic development activities.

Catholic Relief Services (CRS) programs director Mr Robert Mgeni said such measures are essential in developing business plans and financial skills but they lack collateral to access loans.

He said this at the sideline meeting to celebrate 60 years of CRS in Tanzania, which was followed by a youth led-dialogue of personal stories, opportunities and challenges.

"Most financial institutions charge interest rates of 20 to 10 percent, while others require properties and reliable assets such as bonds which makes it difficult for youth to meet the criteria because they do not own such properties," he said.

He noted that Tanzania has one of the fastest growing and youngest populations in the world, with over 60 per cent under the age of 24.

This shows that the country has potential to develop economically, thus their organization has reached over 500 youth countrywide to  provide business skills training and opportunities for youth to gain the skills and become self-efficacy.

"We are also providing training on good agricultural and animal keeping practices, as well as linkages to input suppliers and markets. Financial discipline and raise capital CRS' holistic Savings and International Lending Communities (SILC) and link them to financial service providers, "he said.

Tanzania Horticulture Association (TAHA), business manager environment manger Mr Kelvin Remen said as far as agriculture and food is essential, horticulture is a potential business that can help to uplift youth economically.

According to him, the opportunity of horticulture is high because it can only take 45 days for someone to grow vegetables and sell them, unlike other crops.

"Horticulture has an assured market, considering the population is growing. East Africa Community (EAC), it is estimated that we will have a population of 485 million people and some of the Countries do not have fertile soil. We are surrounded by more than 250 million people so we have an opportunity, the most important thing is to capitalize the opportunity, "he said.