NMB, Agricom open agriculture financing window

NMB Bank and Agricom Africa have entered into partnership to enable small, medium and large-scale farmers’ access loans for tractors and other farm equipment to boost productivity.

The NMB Chief of Retail Banking, Mr Filbert Mponzi, said on Tuesday that in this arrangement, farmers who borrow these agricultural tools will be needed to make a 20 per cent down payment.

“The aim of this partnership is to promote and bring about transformative changes in agriculture for farmers of all levels,” he said.

The lender will cover the remaining 80 per cent and the borrower will have the flexibility to repay the loan either during the specific crop season or in instalments from other income sources.

Through the agreement, farmers will have access to loans for tractors, agricultural tools, and inputs – resources provided by Agricom.

The agri-sector currently employs approximately 70 per cent of the workforce and contributes 26 per cent to the national income.

CEO of Agricom Africa, Alex Duffar, said the collaboration between the two entities, given their extensive network of over 7,000 small, medium, and large-scale customers and NMB’s wide branch coverage, will boost the development of the agricultural sector in Tanzania.

Mr Duffar highlighted that Agricom offers a range of products that meet the needs of stakeholders in the agricultural value chain.

Their expertise lies in producing inputs and essential tools that cover all critical stages of farming, including land preparation, irrigation, planting, weeding, crop maintenance, and post-harvest storage.

The partnership between Agricom, with its more than 40 authorised distributors and 13 branches, and NMB, with its extensive branch network throughout the country, ensures rapid growth of the agricultural sector and the prosperity of individuals and the nation as a whole.

Initially, the Head of Agri-Business Department at NMB, Mr Nsolo Mlozi, stated that they have made significant investments in the agricultural sector, providing billions in loans to stakeholders.