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Rwamugira: Tanzania Labour Party's presidential candidate who pledges to end predatory loans

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  Published in Politics and Government on Monday, September 15th 2025 at 2:34 GMT by The Citizen
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Rwamugira: Tanzania Labour Party’s Visionary Candidate Promises to End Predatory Loans

In the lead‑up to Tanzania’s 2025 presidential election, the nation’s political scene has been electrified by the candidacy of Emmanuel “Emanuel” Rwamugira, the Labour Party’s (TLP) flag bearer. A former senior banker and outspoken advocate for financial equity, Rwamugira has pledged a radical shift in how Tanzanian citizens are treated by the country’s credit system, promising to eradicate “predatory loans” that have trapped millions in a cycle of debt.

From Banking Hallways to the Campaign Trail

Rwamugira’s entry into politics was not a sudden departure from the corporate world. Born in a modest village in the Kilimanjaro region, he rose through the ranks of Tanzania’s public‑sector banking institutions, eventually serving as the chief operating officer of the National Housing Bank. His tenure there was marked by efforts to broaden access to affordable mortgage financing for low‑to‑middle‑income families. Yet, after a dispute with the bank’s board over the tightening of credit policies, he was dismissed in 2021, a move that he claims was politically motivated.

“After years of watching people lose their homes, farms, and dignity to exploitative loan terms, I realized that the only way to make a difference was to stand in front of the people and give them a voice,” Rwamugira said in an interview with The Citizen. His move to the TLP in early 2022 followed the party’s decision to overhaul its platform, positioning itself as the most progressive opposition force in the country.

The Predatory Loans Problem

While Tanzania’s economy has grown steadily in recent years, a shadowed side of that growth has been the rampant rise of “predatory loans.” According to the TLP’s policy brief—linked in the original article—these loans are characterized by:

• Exorbitant interest rates: Many micro‑finance institutions (MFIs) charge rates exceeding 30% per annum, far above the statutory cap.
• Opaque collateral requirements: Borrowers often sign contracts that bind them to collateral beyond what is legally required.
• Aggressive collection tactics: Reports from NGOs highlight harassing phone calls, intimidation, and even physical threats.

Rwamugira’s pledge to eliminate these loans is backed by a pragmatic roadmap that draws on both regulatory reform and the creation of alternative funding channels. Key proposals include:

1. Re‑introduction of the “Consumer Credit Code.” The TLP argues that the 2008 Consumer Credit Act, which set a maximum interest rate of 20% per annum, was abandoned in the name of “financial liberalisation.” Rwamugira vows to bring this legislation back into force, with rigorous monitoring by the Tanzania Bankers’ Association (TBA).
2. Strengthening the Financial Service Regulatory Authority (FSRA). He plans to increase the FSRA’s budget by 25% and empower it to conduct on‑site inspections of all MFIs.
3. Establishing a “Micro‑Finance Guarantee Fund.” With backing from international partners such as the World Bank and the African Development Bank, the fund would provide low‑interest loans to micro‑businesses, thereby reducing their reliance on high‑interest private lenders.

The article notes that the TLP’s policy brief is already circulating in academic circles, sparking debate about the feasibility of such sweeping reforms in a country where informal lending is deeply entrenched.

Beyond Loans: A Broad Reform Agenda

Rwamugira’s platform extends far beyond financial regulation. He presents a comprehensive plan to address several pressing issues:

• Education: The candidate promises to increase public school funding by 15% and to launch a nationwide scholarship program for STEM fields.
• Healthcare: A new “Health for All” initiative aims to provide free maternal and child health services in rural districts.
• Employment: A “Youth Employment Scheme” would train 200,000 unemployed youth in digital skills over five years.
• Governance: He vows to establish an independent anti‑corruption commission with the power to prosecute high‑ranking officials.

He has already cited the need to reform the land‑registration process, noting that “land disputes are a major source of social instability.” His vision for a transparent and digital land registry is part of a broader “e‑government” strategy that the TLP champions.

Political Context and Reception

Tanzania’s political landscape has been dominated by the ruling Chama Cha Mapinduzi (CCM) party for six decades. The last election, held in 2020, saw incumbent President John Magufuli win a decisive victory, though his administration faced criticism over alleged human‑rights violations and suppression of dissent. Rwamugira’s emergence as a credible opposition candidate is therefore a notable development.

Commentary from political analysts, referenced in the article, suggests that while Rwamugira enjoys support among younger voters, the older electorate remains wary of a party perceived as “too radical.” Nevertheless, the TLP’s social media presence—particularly on platforms such as Twitter and WhatsApp—has garnered millions of followers. According to a poll cited in the article (conducted by the Tanzania Institute of Political Studies), Rwamugira’s popularity among youth aged 18‑35 stands at 48%, a significant uptick from his predecessor’s 24% in the 2015 election.

Links to Further Reading

The original article contains several hyperlinks that deepen the context:

1. TLP Official Platform – A PDF that details all policy proposals, including the predatory loan reforms.
2. World Bank Report on Micro‑Finance in East Africa – Provides comparative data on interest rates across the region.
3. Tanzania Bankers’ Association Statement – Offers a counter‑argument to the TLP’s proposals, emphasizing the need for private‑sector flexibility.
4. Tanzania Election Commission’s Candidate Registry – Verifies Rwamugira’s candidacy and outlines the election procedures.

These resources, when combined, paint a full picture of Rwamugira’s platform, the current state of Tanzania’s financial services sector, and the challenges that lie ahead for the country’s political and economic future.

What Comes Next?

As the 2025 presidential campaign heats up, the real test for Rwamugira and the TLP will be to translate policy rhetoric into practical reforms. The opposition will need to demonstrate that its vision for ending predatory loans is not only ideologically sound but also executable within the constraints of Tanzania’s existing legal and institutional frameworks.

The Citizen’s coverage of Rwamugira’s pledge to end predatory loans offers a window into a new era of Tanzanian politics, where the voices of ordinary citizens and the promises of a bold, reform‑oriented candidate could reshape the nation’s financial landscape. Whether the TLP can break the long‑standing dominance of the ruling party and deliver on its promises remains to be seen, but the conversation it has sparked—both domestically and internationally—signals a pivotal moment in the country’s democratic evolution.