The Tanzania Agricultural Development Bank through its Smallholder Credit Guarantee Scheme (SCGS) has entered into five years agreement with the Exim Bank Tanzania, committing fund to support access to finance to the agricultural sector worth TZS 30 billion.
TADB will provide credit guarantee of up to 70% of the loans especially for youth, women and climate-smart agriculture projects. Micro, Small, and Medium-sized processors (MSMEs), crop-small farmer, livestock and fisheries will continue to benefit through this partnership with loans from Exim Bank throughout the country.
Speaking at the signing ceremony, the TADB Managing Director, Mr. Frank Nyabundege said, TADB understands access to capital and affordable terms to farmers are among the challenges facing agricultural sector in the country, which is why the agri-bank partnering with commercial banks, financial institutions and other stakeholders in catalysing access to capital and affordable terms to the agriculture, livestock and fisheries sector in the country.
“For many years, we have seen small-holder farmers in the country struggling to access affordable capital & loans. Many had no option but to accept difficult terms and high interest rate loans which have been very challenging for them in making repayments.
“Therefore, as a development finance institution, through our innovative guarantee scheme for small-holder farmers, we have taken the necessary action to promote and incentivise banks and other financial institutions to offer appropriate and affordable financing solutions, so as to enable many farmers in the country to access affordable capital and loans for transformation of the sector,” He emphasised.
On his part, the Chief Financial Officer of Exim Bank, Mr. Shani Kinswaga, has said that they have reached a decision to partnering with TADB with the aim of increasing strength
“We are thankful that we have reached an agreement with TADB, our main intention is to ensure provision of agri-loans to many farmers and agribusiness enterprises in the country and enable them to transform lives, create employment and contribute to the growth of the country economy” stressed Mr. Shani.
Mr. Kinswaga continued, ” These loans are accessible across all our branches in Tanzania mainland and Zanzibar. We would therefore like to call upon all small-holder farmers and SMEs to take charge of this opportunity.”
Exim Bank Partnership makes the total number of financial institutions benefiting from the SCGS reaching 17. These institutions include Commercial Banks, Corporative Banks and Microfinance Financial Institutions capable of serving farmers through their network across the country.
