Success of TADB Smallholder Credit Guarantee Scheme (SCGS)
Tanzania Agricultural Development Bank through the Market Infrastructure Value Addition and Rural Finance (MIVARF), successfully administers its Smallholder Credit Guarantee Scheme (SCGS).
By The Citizen Reporter
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Tanzania Agricultural Development Bank through the Market Infrastructure Value Addition and Rural Finance (MIVARF), successfully administers its Smallholder Credit Guarantee Scheme (SCGS).
SCGS is geared towards the bank’s strategic mandate to enhance smallholder farmers’ access to loans at low-interest rates and other affordable conditions. The scheme is funded by the International Fund for Agriculture Development (IFAD) through MIVARF under the Prime Minister’s Office.
The key goal of TADB’s SCGS is to catalyze commercial banks, community banks and microfinance institutions in Tanzania to increase and improve access to lending by smallholder farmers who generally face challenges to access adapted and affordable finances from the formal financial sector.
Furthermore, TADB promotes lending to other value chain enterprises with strong linkages with smallholder farmers. Through this scheme, TADB also financed horticulture where many women and youth are employed.
“This scheme has been in operation since 2018 and TADB has been able to create partnerships with ten (10) partner financial institutions namely NMB Bank, CRDB Bank, NBC Bank, Azania Bank, TPB, Stanbic, Finca Microfinance, UCHUMI Commercial Bank, Tandahimba Community Bank (TACOBA) and Mufindi Community Bank (MUCOBA). TADB believes that through partnership, more smallholder farmers can be reached.” said George Nyamrunda, Principal Officer, Agency Fund Management at TADB.
TADB’s SCGS impact attained to date
By December 2020, two years since the SCGS inception at TADB, partner financial institutions had disbursed agricultural loans worth Sh63.45 billion reaching 8,392 direct beneficiaries and 748,377 indirect beneficiaries.
A detailed aggregation of the SCGS reach Direct beneficiaries: 8,392 out of whom 8,268 are individual farmers (1,528 women and 6,740 men), 98 are farmers’ groups and agricultural cooperatives and 26 are agro-processing SMEs. The TADB Principal Officer of Agency Fund Management, George Nyamrunda explains to Prime Minister Kassim Majaliwa how the bank has impacted over 8,000 smallholder farmers in two years of the funds at TADB. Value chain funded TADB’s SCGS disbursed amount was directed at solving challenges in 29 value chains in cashew, paddy, cotton, coffee, poultry, maize, cassava and sugarcane sub-sectors.“TADB, through this scheme, also financed horticulture where many women and youth are employed. Sunflower, sesame and in livestock and fisheries smallholders have also benefited from the scheme.” Said Mr. Nyamrunda. TADB […]