Banking barriers frustrate agricommunities

SONGWE: FARMERS in Songwe Region have raised concerns over persistent barriers limiting their access to formal financial services, citing high account maintenance fees and the closure of inactive accounts as key challenges that have weakened trust in banking institutions.

The concerns were raised during the launch of the National Bank of Commerce (NBC) “Wekeza NBC Shambani Ushinde” campaign in Mlowo, Mbozi District, where farmers said long-standing banking practices have discouraged them from fully engaging with the formal financial system.

Mbozi resident Mr Nickson Dirisha, said that since income depends on harvest cycles, many farmers struggle to keep accounts active, leading to classification as inactive and eventual closure.

“Also, distance is a major challenge, farmers often travel long distances to access bank services, increasing costs and time burdens,” Mr Dirisha said.

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He added: “even mobile banking is affected by poor network coverage and low digital literacy”. Mr Hifadhi Mdono added that limited financial literacy also prevents farmers from fully engaging with banking services.

“Many farmers are considered highrisk due to lack of collateral, land titles, or formal income records. As a result, some banks are often reluctant to lend or impose strict conditions that are difficult to meet,” he said.

Mbozi District Commissioner Mr Hamad Mbega said that improving access to affordable financial services is essential for unlocking agriculture’s full potential, which accounts for about 80 per cent of the district’s income.

“Addressing these structural challenges is critical for building trust between farmers and financial institutions. Initiatives like NBC Shambani provide access while promoting financial discipline and resilience,” he said.