DAR ES SALAAM, Aug. 4 (Xinhua) -- The government of Tanzania is set to table a Bill in parliament designed to promote small businesses and regulate micro financial organizations, a senior official said on Friday.
Ashatu Kijaji, deputy minister for finance and planning, said the Bill will be tabled in parliament in the political capital Dodoma in September following a long time appeal by Members of Parliament.
Kijaji was speaking on her tour of Unit Trust of Tanzania (UTT) funded projects in Bahi district in Dodoma region.
UTT is a government-owned institution under the Ministry of Finance and Planning, which seeks to empower Tanzanians to become stakeholders in the east African nation's economic development through ownership of shares, savings, and collective investment schemes among citizens.
She said the Bill will be tabled at the right time when there were different opinions on the cost efficacy of the micro-finance organizations model for reaching credit to the poor.
"In September this year we expect to take the Bill to the parliament so that we can excellently monitor this sector in accordance to the law," said Kijaji.
James Washima, UTT Micro-finance chief executive officer, said lack of the micro-finance legislation has resulted in several conflicts, some of which led to closure of some micro financial organizations.
He added: "It is high time the government formulate a special body to oversee the sector."
Washima said micro-finance institutions have been issuing loans to millions of Tanzanians without being guided by regulations and principles, which he said should be a thing of the past.
