CBT gets 8.5bn/- to support farmers
DODOMA: COOPERATIVE Bank Tanzania (CBT) has received 8.5bn/- from the Agricultural Inputs Trust Fund (AGITF) to expand affordable credit access for smallholder farmers, focusing on youth and women in the Building a Better Tomorrow (BBT) programme.
Speaking at the handover ceremony during the Nanenane Exhibition in Dodoma, Deputy Permanent Secretary in the Agriculture Ministry, Dr Stephen Nindi hailed the initiative as a key step in transforming agriculture into a source of jobs and sustainable income.
“This support reflects the government’s strong commitment to creating meaningful agricultural opportunities for youth and women,” he said.
Dr Nindi emphasised the importance of establishing a strong loan monitoring framework to ensure accountability, urging all beneficiaries to repay the loans promptly to allow more people to benefit from the revolving facility.
AGITF Acting Managing Director Mr Itandula Gambalagi said the 8.5bn/- support package includes a 5bn/- direct loan and a 3.5bn/- guarantee facility to de-risk loans for youth in agribusiness.
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“This funding empowers small and medium-scale farmers and fulfills the government’s commitment to strengthen agribusiness financing,” he said, noting that strict oversight will ensure the funds are used for agriculture-related activities only.
“These are not free handouts but purposeful credit. We’ll monitor disbursements and recoveries through monthly bank reports,” he added.
The loan scheme will benefit Coop Bank customers in the agricultural value chain, with a focus on youth and women-led ventures. CBT Managing Director Mr Godfrey Ng’urah reaffirmed the bank’s commitment to working with the Ministry of Agriculture to deliver inclusive, affordable agribusiness financing.
“Our target is marginalised groups youth, women and rural cooperatives,” he said.
He also introduced Mchongo Shambani, a new loan product tailored for farmers, agro-processors, transporters and those involved in value addition.
Offered at interest rates under 9 per cent and backed by AGITF guarantees, the product targets youth in the BBT programme and agribusiness incubators, helping them access working capital and connect to markets.
To improve access to credit, CBT will support youth and women in forming cooperatives, enabling them to secure loans without traditional collateral and connect with buyers nationwide.
