TIB’s Agriculture Window value almost doubles

DODOMA: TIB Development Bank’s Agriculture Window has nearly doubled from the initial 42bn/- government funding at its 2010 launch to 82bn/-, extending support to farmers in 76 districts across 23 regions, demonstrating substantial growth and expanded outreach.

During this period under review, the scheme disbursed loans to 130 companies, 80 SACCOS and 12 banks.

At the Nanenane Agricultural Exhibition in Dodoma, the bank’s Fund Manager for Agency Financing, Ms Monica Luziro said the fund was created to provide affordable credit to smallholder farmers, associations, cooperatives, microfinance institutions and agribusinesses in the agricultural value chain.

“The fund is designed for agribusiness to support commercial farming. Borrowers repay the loans so others can benefit. It’s a revolving fund, not a grant,” she emphasised.

The manager noted that TIB actively monitors funded projects to ensure sustainability and accountability.

“We educate and visit borrowers to assess their ability to repay. Many still see government funds as handouts, but this is not,” she said.

The fund targets three borrower categories: Banks and microfinance institutions, SACCOS and associations and agribusiness companies across the agricultural value chain.

“While the overall amount may seem modest, its impact on low-income groups mainly small-scale farmers is significant,” he said.

She explained that commercial banks often avoid agriculture due to its risks and long returns.

“Agriculture requires patience and upfront investment, which many banks find challenging. That’s why the Agriculture Window was launched.”

Loan amounts range from 50m/- to 3bn/- for commercial banks, 50m/- to 1bn/- for SACCOS and 50m/- to 2bn/- for companies.

TIB lends at a concessional 4 per cent interest rate, expecting onlending at a maximum of 8 per cent.

The fund supports small to large agribusinesses involved in production, processing and distribution. Financing 100 SACCOS, each with over 200 members, helps reach thousands of farmers a model that inspired the Cooperative Bank.

For commercial banks and microfinance institutions, even small loans of 3m/- to 10m/- can impact many; one bank can lend to over 600 small-scale borrowers through this scheme.

TIB’s Agriculture Window has also created approximately 10,500 jobs nationwide across farming, input supply, processing, transportation and marketing.

ALSO READ: SGR cargo rail is a game-changer for Tanzania’s economy

Beyond agriculture, TIB has invested over 630.3bn/- in medium and long-term projects since President Samia Suluhu Hassan took office four years ago.

Of this, 408.3bn/- came from the bank’s balance sheet and 222bn/- from nine special funds managed by TIB.