Small Industries Development Organisation (SIDO) debtors at the Dar es Salaam Regional Office have started repaying their arrears following the elapsing of the grace period given by the management.
Last month SIDO launched a campaign to recover loans dubbed ‘pay your loans to SIDO, be patriotic’ by contracting Yono Auction Mart on the exercise to recover the funds.
SIDO had loaned millions of shillings to entrepreneurs and tenants at the organisation estate in Dar es Salaam.
SIDO Dar es Salaam Regional Manager Mackdonald Maganga told Azania Post that until now the organization has managed to collect Sh70m out of Sh350m it owe entrepreneurs.
“Debtors have started repaying their loans, we have just completed the evaluation exercise, Yono Auction Mart will continue to collect the loans on our behalf,” he said.
Over 50 entrepreneurs had filed to repay their loans in an agreed period while 27 tenants have not yet settled their bills.
Maganga said the recovered money would be used to support young entrepreneurs and improve the orgnisations infrastructures.
He urged all loan defaulters to repay their loans in time or face legal action including auctioning their collaterals.
According to him SIDO will continue to encourage innovation of new products and services through incubation and provide modular work premises with common facilities, managerial support and back up services to product developers.