Tanzania Agricultural Development Bank (TADB) and International Fund for Agricultural Development (IFAD) Tanzania have affirmed their determination to enhance access to capital among smallholder farmers in Tanzania.
The TADB Managing Director Frank Nyabundege said the bank is managing the Smallholder Farmers Credit Guarantee Scheme funds (SCGS) which is under the Prime Minister’s Office.
The total funding managed at TADB for the SCGS is 25 million US dollars from the IFAD.
"Through this funding, TADB has been able to impact directly 11,468 smallholders, while reaching indirectly 766,380 individuals. We appreciate the strong partnership that IFAD has with our government such that we can realise the government goals to its people," he said.
Commending the TADB contribution to the sector, and the IFAD Country Office Officer Jacqueline Machangu said the efforts TADB has placed in de-risking the agriculture sector to be a milestone on its own.
"I understand that there are still challenges in finance accessibility, however, I commend the job done by your institution. I have learnt that you have been able to influence lowering of interest rate and it’s such a commendable job," she said.
Smallholders in Tanzania cultivate 5.1hacters of land and produce 85 per cent of the country’s food.
"This is why IFAD works tirelessly with the government. If we want to see Tanzania ends hunger, eradicate poverty, improve livelihood and ensure financial inclusion, it is the smallholder that should be targeted," she said.
Reflecting on their experiences during the courtesy call meeting of the TADB Managing Director at IFAD Tanzania offices, both leaders identified the existing challenges smallholder farmers yet experiences such as low yields and access to finance.
"We are working and we want to see that the lives of our farmers are changing for the better. To do this, we believe that with strong partnerships with a local and international institution such as IFAD we can increase our impact. We are determined at making agriculture be bankable," clarified Nyabundege.
TADB is currently in partnership with 12 commercial financial institutions in implementing the SCGS facility.