Tanzanian credit societies urged to apply for LAPF loans

Dec 08, 2010

Savings and credit cooperative societies in Tanzania need to apply for low-cost loans from the Local Authorities Pensions Fund (LAPF).

This is the view of LAPF Director-General Eliud Sanga, who stated such a move will help the bodies provide affordable credit to their clients, Daily News reports.

"We do not offer only pension services to our customers … we have extended credit services" he was quoted as saying, noting the fund has been looking at increasing its contribution to the nation's economy by moving into alternative investment opportunities.

Credit cooperatives have received three billion Tanzanian shillings (€1.5
million) from the LAPF over the past two years and Mr Sanga remarked many pension schemes can have a substantial impact on Tanzania's financial stability, as they possess large cash reserves.

The newspaper recently reported that Tanzania Women's Bank is looking to raise capital through a private placement, so it can increase the range of financial services it offers to customers in rural areas.