THE Tanzania Agricultural Development Bank (TADB) reported here on Friday that as of last month, it provided loans of about 300bn/- to 800,000 farmers in Mainland Tanzania and Zanzibar. A statement issued here on the occasion of signing partnership between TADB and the National Bank of Commerce Bank (NBC), the fund improved the livelihoods of 1,800,000 farmers, especially by boosting growth of value chains in agriculture, livestock and fisheries sectors.
The accord signed on Tuesday would empower the two banks to disburse 20bn/-, in lowinterest loans, to increase capital of small holder farmers in the three sectors by transforming product value chains.
With the agreement, now farmers can apply for loans at the NBC branches because they will be guaranteed by the TADB through special programme dubbed the Smallholder Credit Guarantee Scheme (SCGS).
“The loans are guaranteed by us through the SCGS. We have taken this action to enable many more farmers across the country to get low-interest loans in partnership with NBC…farmers can now access affordable capital,” TADB Director of Finance and Resource Mobilization, Derick Lugemala said.
Mr Lugemala also said that until last month, through the SCGS scheme, 75bn/- was released to boost projects in the three sectors impacting 11,000 beneficiaries directly and 755,000 indirectly.
“The value chains which we have been financed under this scheme have improved hugely in cashew nuts, paddy, coffee, sugarcane, maize, cassava, cotton and poultry projects,” explained Mr Lugemala.
Mr Elvis Ndunguru, the NBC Director of Business Banking from NBC explained the manner in which the loans will be disbursed, saying: “Individual small-holder farmers will access loans up-to 50m/-, farmer groups and societies will get up-to 500m/-,while registered SMEs whose agricultural projects benefit small-holder farmers will get access up-to 1bn/-.