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Transcript/Script((INTRO))
[[In Tanzania, a growing number of people are falling victim to predatory loans made through mobile phones. When borrowers struggle to repay the loans, they face a variety of threats and penalties. Ronald Sonyo has this report from Dodoma, Tanzania.]]
((VIDEO: Rashid Mwenda at home, b-roll of him.))
((NARRATOR))
Some Tanzanians are being convinced to take quick, no-hassle loans by eye-catching advertisements. But many are finding the promise of quick money carries unseen risks.
Rashid Mwenda is one of them.
((Rashid Mwenda, Dodoma Resident)) ((Male, in English))
“Since I was taking the loan, the problem has started. When rumors spread that Rashid took a loan, some people went to my employer. They sacked [me]. It’s really hard. It was five years ago, but until now I haven’t recovered. My life has changed. My income is dwindling because of this interest.”
((VIDEO: Dodoma City.))
((NARRATOR))
An overwhelming number of those caught in this trap are young people with limited income, struggling to make ends meet. Taxi driver Fakhi Zuberi says young people are easily lured by advertisements on their phones promoting loans claiming to be quick to get and easy to pay off.
((Fakhi Zuberi, Tax Driver)) ((Male, in Swahili))
“The majority of college students are victims of loans. Some of them have mortgage certificates because of loans. Not just online. Now they come to the street to take loans, and then they mortgage their school certificates and take loans.”
((VIDEO: Loan companies.))
((NARRATOR))
The situation has drawn the attention of the government which has intervened by suspending all online lending until further notice. Erick Makundi, who works for UHUMA Financial Services, a local loan company explains.
((Erick Makundi, UHUMA Financial Services Manager)) ((Male, in Swahili))
“It’s true. Nowadays some customers blame loan companies. Suspicion has increased and has become common because the number of loan companies is increasing, especially online lenders. Why is that? Because anybody who has a national ID number can receive loans without having conditions.”
((VIDEO: Central Bank of Tanzania.))
((NARRATOR))
The Central Bank of Tanzania, which oversees small financial services, says it has begun taking measures to monitor loan providers and will revoke the licenses of those found to be violating the regulations.
((Robert Mshiu, Central Bank of Tanzania Loan Services Manager)) ((Male, in Swahili))
“The Bank of Tanzania, in collaboration with security agencies ... is taking action against those issuing loanswithout a license. These individuals have been taken to court. This campaign is ongoing nationwide, and we want people to understand that, through our coordinated efforts, we are committed to putting an end to this issue.”
((VIDEO: Dodoma City.))
((NARRATOR))
The Central Bank of Tanzania says that customers must be treated fairly and transparently under its new financial regulations. The bank is also reminding people to take the time to carefully review and understand any loan agreement before signing it—and to make sure the lender has a valid license from the bank.
((Ronald Sonyo, VOA Africa, Dodoma, Tanzania.))
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