Zanzibar Unveils Digital Loan System for Inclusion

Zanzibar Launches Digital Loan System for Special Groups

Unguja, Zanzibar – April 3, 2025:
In a groundbreaking move to improve financial accessibility and streamline support for underserved communities, the Zanzibar Economic Empowerment Agency (ZEEA) has unveiled a digital platform for loan issuance targeting special groups. The new system, which will officially go live on April 15, 2025, marks a strategic shift from traditional loan application methods toward a more transparent, efficient, and secure digital process.

The initiative is specifically designed to benefit women, youth, and persons with disabilities—groups that have historically faced challenges in accessing timely financial support due to bureaucratic delays and procedural bottlenecks.

Speaking at the launch event, Shariff Ali Shariff, Minister of State in the President’s Office for Labour, Economy, and Investment, hailed the system as a transformative step in Zanzibar’s economic empowerment agenda.

“With loan applications and processing now conducted online, applicants will receive timely responses, enabling them to start or expand their businesses without unnecessary delays,” said Shariff.

The platform promises real-time updates, instant feedback, and a secure digital framework for both disbursement and repayment of loans. Applicants will no longer need to visit physical offices, and repayments can now be completed digitally through the Tanzania Commercial Bank (TCB), thereby minimizing risks related to fund mismanagement or fraud.

“The system ensures that funds reach the intended beneficiaries securely and transparently,” he added.

Designed to be inclusive and user-friendly, the system enables applicants to track their loan status at each stage, fostering transparency and reducing uncertainty in the process. The government has reiterated that the platform is accessible to all eligible individuals, regardless of location or physical ability.

Since September last year, the government has distributed Sh965 million to 123 entrepreneurial groups involving 1,054 individuals—of whom 899 are women and 155 are men. These groups include 80 women-led, 30 youth-led, and 13 groups composed of persons with disabilities.

Despite the government's commitment to fostering entrepreneurship, traditional loan disbursement systems have often suffered from procedural inefficiencies. The new digital model aims to eliminate these challenges through a collaborative effort between three key partners: ZEEA, Airpay, and TCB.

ZEEA Chief Executive Officer Juma Burhan emphasized that the system will ensure broader reach and quicker processing.

“The system will facilitate loan disbursement within a maximum of 14 days, with some loans processed within just 24 hours,” he said.

Borrowers will also benefit from enhanced convenience, as they can now make repayments using mobile phones instead of making in-person visits to banks.

TCB Chief Operating Officer Jema Msuya expressed optimism about the potential of the platform to increase loan access and operational efficiency.

“We take pride in collaborating with ZEEA to ensure efficiency and transparency in loan disbursement,” said Msuya, noting that the bank has already disbursed Sh954 billion through traditional channels.

Airpay Strategy Director Mihayo Wilmore also affirmed the system's robust verification process, which includes screening for existing loans and validating applicant eligibility before transferring requests to TCB for approval.

“If an applicant has an existing loan with ZEEA, the system will indicate this. Once the verification process is complete, the request will be forwarded to TCB for loan approval,” explained Wilmore.

As Zanzibar moves toward a more digital and inclusive economy, this initiative signals a broader commitment to harnessing technology for equitable financial access and empowerment.