TADB through its Small Smallholder Credit Guarantee Scheme (SCGS) has entered into agreement to extend its partnership with TCB to empower thousands of small-holder farmers across the country through low-interest loans, so as to grow their businesses and bring out rapid transformation in the agricultural, livestock and fisheries value-chains.
The agreement, which was signed on Thursday 1st Feb, 2024 at the TADB headquarters in Dar es Salaam, will enable the agri-bank to provide up-to 70% guarantee to farmers applying for loans at TCB, particularly for youth, women and climate-resilient projects that supporting sustainable agricultural practices.
Speaking at a brief signing ceremony, TADB Managing Director, Mr. Frank Nyabundege, congratulated TCB for the job well done and for seeing the importance of continuing to promote agricultural transformation in the country through their branches.
Mr. Nyabundege said that the partnership between TADB and TCB, which began on May 2018, has been productive and has had a significant benefits to farmers and the agricultural sector in the country as of now through SCGS, TCB has already disbursed:
✅ A total of TSh. 34.1 billion to 2,638 direct beneficiaries and more than 7,750 indirect beneficiaries.
✅ A total of TSh. 4.3 billion has been disbursed to 448 women and TSh. 3.4 billion has been disbursed to 416 youth.
✅ TCB through has reached a total of 94 groups and cooperatives unions with a total of 2,277 members.
For his part, TCB Chief Executive Officer, Mr. Adam Mihayo, said that they had decided to extend the contract with TADB due to the benefits gained through the original contract.
He added that through this new agreement, TCB will expand the scope of loan issuance and reach more farmers in agricultural, livestock and fisheries value-chains by injecting them with capital to facilitate agricultural transformation from subsistence to commercial agriculture and hence economic growth.
As of December 2023, the total amount of loans guaranteed by TADB through the SCGS was Tsh. 250.77 billion to more than 19,400 direct beneficiaries and to more than 897,900 indirect beneficiaries from 27 regions and 129 districts in Tanzania Mainland and Zanzibar where more than 95% of beneficiaries are smallholder farmers, livestock keepers, and fisheries.