Tanzania Agriculture Development Bank (TADB) has signed agreement with Kilimanjaro Co-operative Bank Limited (KCBL) to enable lending small holder farmers in Kilimanjaro Region at affordable interest.
The agreement will see 2bn/- being lend to small holder farmers, livestock keepers and fishermen in the region that will contribute immensely to growing their undertakings. It will make TADB provide guarantee to farmers in the region who will borrow from KCBL for investing in agriculture activities, livestock keeping and fishing activities.
The guarantee is coordinated by TADB under the Smallholder Credit Guarantee Scheme (SCGS). The TADB Managing Director Frank Nyabundege said for a long time farmers have been facing the challenge of securing affordable capital and others borrowing from commercial lenders at high interest rates.
“Thus through the SCGS, TADB in collaboration with KCBL is providing affordable loans to a huge number of farmers in the region and the northern zone,” he said. Commercial lenders
Mr Nyabundege said the agreement with KCBL is intended to persuade more commercial lenders provide loans to more farmers and the whole agriculture, livestock and fishery value chain. Until September this year, TADB has disbursed loans to cooperative societies valued 117bn/- and thus the agreement with KCBL is bolstering the efforts to support the key economic sectors.
The Moshi District Commissioner Said Mtanda who witnessed the signing of the agreement, commended TADB and KCBL for the deal, urging farmers in the region to capitalise on the opportunity to boost farming activities.
On his part, the KCBL General Manager Godfrey Ng’urah, said the 2bn/- that will be lent to farmers through their bank is set to boost productivity in the region. Mr Ng’urah said the loans that will be provided under TADB guarantee will enable small holder farmers in the northern zone to borrow up to 50m/- per individual farmer and 500m/- for farmers groups and 1bn/- for a company.
The TADB has until September this year disbursed loans to smallholder farmers, livestock keepers and fishery sector amounting to 106bn/- that benefitted 11,785 people directly and over 750,000 people indirectly.
The SCGS was established in 2018 and in three years TADB has collaborated with various banks including NMB, CRDB, Azania, Tanzania Commercial Bank, Stanbic, FINCA Microfinance, UCHUMI Commercial Bank, Tandahimba Community Bank (TACOBA), Mufindi Community Bank (MUCOBA), ABSA, NBC, Maendeleo Bank and Kilimanjaro Co-operative Bank Limited (KCBL).
