The National Assembly Committee on Trade, Industry and Cooperatives has raised concerns over the sustainability and effectiveness of government empowerment programmes, including the Hustler Fund and Uwezo Fund.
The committee questioned delays in disbursing loans, the funds’ impact on beneficiaries and their ability to remain financially viable amid concerns over low loan repayment rates.
Lawmakers also sought explanations on the gap between amounts disbursed and funds recovered, citing concerns highlighted in previous Auditor-General’s reports.
The committee asked the State Department for Micro, Small and Medium Enterprises (MSME) Development to explain how the programmes would sustain their operations if loan recovery challenges persisted.
During the meeting, Committee Chairperson and Ikolomani MP Bernard Shinali also sought clarification on the legal framework governing Wezesha Majuu, a programme under the Uwezo Fund that supports groups and individuals seeking employment and other opportunities abroad.
Appearing before the committee, Principal Secretary in the State Department for MSME Development Susan Mang’eni said the Hustler Fund had largely achieved its intended objectives.
She told lawmakers that the programme had operated under a revolving fund model for the past two years, with minimal reliance on funding from the Exchequer.
Mang’eni also reported an increase in Appropriations in Aid (A-in-A), saying the fund had surpassed its collection targets through interest earned from loans issued to beneficiaries.
However, she acknowledged that limited allocations from the Exchequer and constrained fiscal space had slowed the programme’s full implementation.
The committee’s concerns centred on whether the fund could maintain its lending operations and meet its objectives without sufficient government allocations, particularly where borrowers failed to repay their loans.
On the Uwezo Fund, Mang’eni said the State Department was undertaking a digitisation process to improve fund management and speed up loan disbursements.
The initiative is expected to streamline operations, improve service delivery and reduce the time beneficiaries wait to access loans.
The committee also sought clarity on the implementation of Wezesha Majuu, particularly the legal provisions governing the programme and its support for groups and individuals pursuing opportunities abroad.
Mang’eni appeared before the committee alongside Principal Secretary in the State Department for Cooperatives Patrick Kilemi.
The two officials were invited to discuss the implementation of the budgets for the 2024/2025 and 2025/2026 financial years.
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