Agricultural loans empower farmers in southern regions

MBEYA: FARMERS in the Southern Highlands and other regions of southern Tanzania, including Mtwara, have started benefiting from loan opportunities that enable them to access capital and essential agricultural inputs at affordable costs.

The Acting Branch Manager of the People’s Bank of Zanzibar (PBZ) in Mbeya, Abdul Haruni, said this in an interview with the Daily News at his office while explaining the financial services offered by the bank to various groups, particularly farmers.

Mr Haruni said PBZ offers loans to farmers, traders and small-scale entrepreneurs, enabling them to access capital to operate and expand their economic activities.

He said PBZ has been working with the Tanzania Agricultural Development Bank (TADB) to enable farmers to access loans to meet their production needs, including the purchase of agricultural inputs.

According to Mr Haruni, under the arrangement, PBZ provides 40 per cent of the loan, while TADB contributes 60 per cent. The partnership is aimed at ensuring that farmers receive sufficient funds to meet their essential production requirements.

He cited cashew farmers as an example, saying about 20 farmers in Mtwara had benefitted from loans through the partnership.

“The goal is to ensure that farmers get the essential agricultural inputs they need,” Mr Haruni said. He said PBZ’s presence in the Southern Highlands and southern regions of Tanzania had increased opportunities for farmers and traders to access financial services closer to the areas where they conduct their activities.

Mr Haruni explained that PBZ started operations in Mtwara in 2011, while its Mbeya branch was established in June 2024 with the aim of reaching more people, including farmers.

He said interest rates on loans offered by the bank range between 14 and 16 per cent, adding that the bank also provides services based on Islamic and international banking principles.

Mr Haruni said PBZ was established on June 30, 1966, by the Revolutionary Government of Zanzibar and continues to provide services in Zanzibar and Mainland Tanzania.

He said the bank has a 99 per cent presence in Zanzibar and 12 per cent on the Mainland.

He added that the bank had placed emphasis on reaching people in both rural and urban areas while facilitating access to financial services within and outside the country.

Meanwhile, Mr Haruni said PBZ had been providing financial education to traders operating in the mining areas of Chunya, urging them to keep their money in financial institutions rather than storing it at home or in traditional savings boxes.

He said keeping money in unsafe places could result in losses through theft, house fires and other disasters.

Mr Haruni also said the bank had continued to support traders facing capital challenges, citing the Covid-19 pandemic period when some traders who had exhausted their working capital were provided with loans to enable them to continue operating their businesses.

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He further said PBZ had continued to provide services to various groups through different types of accounts, including the STARA account for senior citizens and pensioners, the Mrembo account for women and accounts for children and students.

He said the availability of these services gave members of the public an opportunity to choose financial products according to their individual needs.

Mr Haruni thanked the Revolutionary Government of Zanzibar and the Union government for their cooperation with the bank, saying many public servants use PBZ for loan facilities and other financial services.

He said some public servants continued to benefit from the bank’s services even after retirement, including through the STARA account.

On practical training, Mr Haruni said the PBZ Mbeya branch had so far received more than 16 students from various colleges and universities, who were gaining practical experience in banking operations.