TADB disburses 1.1tri/- to boost agriculture

DODOMA: THE Tanzania Agricultural Development Bank (TADB) has disbursed over 1.1tri/- to farmers and other stake holders across the agricultural value chain, as part of a broader strategy to boost a sector that employs nearly 70 percent of the country’s population.

TADB’s Central Zone Business Officer, Mariam Leonard, said at the ongoing Nane Nane exhibition that the bank has placed special phasis on youths and women participation in agribusiness, in line with the government’s wider efforts to enhance productivity and strengthen the agricultural economy.

According to the official, the Smallholder Credit Guarantee Scheme (SCGS) is increasingly seen as a key driver in transforming agricultural financing in the country, which is why TADB is focusing on scaling it up.

TADB Business Officer Rosemary Gordon said the SCGS, launched in 2018, has enabled over 762,291 farmers to access loans through various financial institutions.

She said lack of collateral has been a major obstacle for farmers and the fund helps break that barrier by working with 19 financial institutions to provide loans to farmers, livestock keepers and fishers.

She said the fund covers the entire agricultural value chain, enabling farmers to access inputs, modern farming equipment and financing for processing and marketing their produce.

So far, a total of 43.6bn/- has been guaranteed for the purchase of tractors and other machinery, while 197bn/- has supported agricultural inputs.

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“We provide financing from farm to table. We also support those involved in processing and marketing of agricultural produce—every one along the value chain is a beneficiary of this guarantee scheme,” said Ms Gordon.

TADB said its SCGS also supports livestock keepers and poultry farmers, in addition to crop farming.

“The guarantee scheme benefits more than just farmers,” said Ms Gordon.

She said the scheme has already been implemented in all regions of Mainland Tanzania and Zanzibar.

While the standard guarantee cover age is 50 per cent, it can rise to 70 per cent for climate smart projects led by women or youths.