The entrepreneurs are said to fail to get the money that was issued through the Small Industries Development Organisation (SIDO) as they cannot afford to pay the “huge” interest rate set. SIDO Regional Manager, Mr Abel Mapunda, said here that the would-be beneficiaries declined to apply for credit facilities.
He was speaking at a meeting that was called by the Tanzania Chamber of Commerce Industries and Agriculture (TCCIA). He unveiled that SIDO had gone with such approach so as to support the entrepreneurs to jack up their capital. Mr Mapunda, who is an expert in industrial sector said they entered into agreement with CRDB Bank in 2016 but until now there is no single entrepreneur who has accessed the credit as they cannot meet the set criteria.
The manager called upon the entrepreneurs to join hands and access the credit facilities so as to engage in putting up industries in the country as every region is supposed to have at least 100 industries. Mr Mapunda said they were compelled to sign an agreement with CRDB as SIDO is not competent to issue loans that are above 5m/-.
He said the bank could issue between 10m/- and 50m/-. CRDB Commercial Manager, Mr Denis Kashasha, said that some Tanzanians fail to achieve huge loans as they target too small investments instead of aiming high.