‘Borrow from registered lenders only to avoid loan sharks’

The call was made here by Salim Kimaro, senior official from the Ministry of Finance, during the opening of training on financial literacy for artists from Tanzania Community Civic Initiatives (TACCI) held here on Monday. After the training, the group will be used to conduct financial literacy awareness in an artistic manner.

He said loan applicants are required to have adequate knowledge on financial services, including reading and understanding loan agreements and the actual costs of the loans before accepting them.

“The financial sector development programme directs provision of financial literacy to the public through various mechanisms. Therefore, the training for artists will help pass financial knowledge to rural areas where there is low understanding hence residents are vulnerable to loan sharks,” he said.

He said the financial sector development plan prepared by the government through the Ministry of Finance seeks to improve and expand financial services, ensure availability of capital and ensure the financial sector is sustainable and contributes to the national economy as required.

Kimaro added that the public education programme is implemented as part of implementation of the Financial Sector Development Master Plan from 2020/2021 financial year to 2029/2030.

He said the master plan will then be evaluated to see the achievements gained during execution and come up with suggestions for improvement in areas where challenges may arise.

Kimaro said art is one of the good means to disseminate information to the public since it is easier to reach people in large numbers and send not only here in Tanzania but throughout the world.

He pointed out key focus areas during provision of financial literacy as personal financial management, savings, loans, investment, insurance, deposit insurance, retirement plan, taxation, payment systems and protection of users of financial services.

“We will go to rural areas and select areas with low financial literacy where the artists who possess financial understanding can go and share the right information with the public,” said Kimaro.

He added that loan applicants should seek loans for productive investment like purchasing land which enables borrowers to grow crops or expand businesses.

Aline Augustin, director of TACCI, said among the unique ways of educating the society is to conduct on stage acts for community development through traditional dances and radio dramas.

“Through radio dramas, TCCI has the major opportunity of reaching out to the community, passing the knowledge as well as attracting various groups and ignite discussions concerning the provided education,” she said.

She further emphasized that the ongoing training on financial literacy equips them with a wider understanding and scope to help them prepare an artistic way of communicating the desired knowledge that meets the needs of the government.