Stanbic Bank Tanzania has signed a Memorandum of Understanding (MoU) with Agricom Africa (AA) to modernise and boost growth of the agricultural sector.
According to the statement issued at the weekend, the agreement that was inked at the Nanenane grounds in Mbeya Region will allow customers to benefit from Agricom Africa’s value add technologies which cover the entire agricultural cycle and are designed to enhance productivity.
Stanbic Bank will also extend up to 80 per cent financing, payable over some of the longest terms (up to 60 months) in the market.
Mbeya Regional Commissioner, Juma Homera commended the project saying that it will play a vital role in supporting the government’s goal to increase the agricultural sector growth by 10 per cent in 2030.
“For agriculture to succeed in this present time, it requires modern machinery and through this agreement, farmers will move from traditional farming methods to modern machinery in production a move that will add value to the country’s agricultural sector as well as facilitate agribusiness,” he said.
Speaking earlier, the Head of Vehicle and Asset Financing at Stanbic Bank, John Mosha said that the transformative impact of the partnership will empower farmers with vehicle and asset financing facilities, including loans for agri technology and equipment purchases, farm equipment leases among other options, making them not only more financially liquid and productive but also farm-smart.
On his part, Head of Business and Commercial Banking at Stanbic Bank, Fredrick Max highlighted the bank’s commitment to supporting agriculture value chains saying that the bank has been doing asset financing and supporting other sectors for a long time but as of now they are determined to increase their footprint in the country’s agricultural sector.
“We are also dedicated to nurturing women and youth entrepreneurs in agribusiness through our business incubator programme. The programme prioritises aspiring and budding youth and women entrepreneurs in agribusiness,” he said.
Agricom’s Group Chief Executive Officer, Alex Duffar said that since agriculture plays a pivotal role in the country’s growth, by accelerating mechanisation in the sector they can pave the way for a tradable economy, considering its significant contribution of nearly one-third of the country’s GDP.
“At Agricom Africa, we are committed to being a catalyst for mechanized growth through valuable partnerships like the one we have signed with Stanbic Bank Tanzania. This will provide farmers with enhanced access to reliable and innovative agri-equipment,” Mr Diffar said.
