The scheme will apart from increasing productivity and employment, boost government efforts towards Tanzania's green revolution as part of the country's industrialization drive to be achieved in 2025.
TADB in partnership with the Post Bank (TPB) has recently enabled more than 217 farmers to access agricultural loans on friendly terms through the SCGS funds. A total of 1.4bn/- have been invested in various agricultural areas in a period of three months.
Some of the supported projects are value addition whereas a total of 600bn/- have been given to processors, 510m/- to 122 paddy smallholder farmers from Geita, Iringa, Katavi, Mbeya, Morogoro, Mwanza, Ruvuma, Shinyanga, Tabora and Coast region.
The bank also provided 134.5m/- to 47 farmers in Mpwapwa district, Dodoma region.
A total of 120m/- was given to 10 fishermen from Kigoma, Simiyu and Mwanza region while a total of 38 sesame farmers from Coast, Lindi, Ruvuma and Dodoma regions received loans amounting to 81.185m/-.
Japhet Justine, TADB Managing Director said that until March 31, 2020 the bank together with partner banks issued loans amounting 48.74bn/-, just two years since the establishment of the SCGS funds.
Justine said a total of 6,589 small-scale farmers have benefited from direct loans through cooperatives and groups, and some more than 717,713 farmers have indirectly been able to access markets and capital through the funding scheme.
“There will be no success and development in agriculture if smallholder farmers are not transformed, financially supported and included in agribusiness projects across the value chain”, he said.
The SCGS is a credit guarantees facility administered TADB for agricultural loans extended by the Partner Financial Institutions (PFIs) to smallholder farmers or private companies (SMES and Corporate) engaging in agriculture value chain.
TADB has a partnership with commercial banks such as NMB, CRDB, TPB and Stanbic, with financial institution partners including FINCA and community banks including MUCOBA, TACOBA, and the Economic Bank.
The SCGS strives to mitigate the credit risk of underlying loans extended to smallholder farmers.
It is a TADB’s strategy to reach to more non-bankable farmers especially women and youth and empower them with financial, capacity building and employment opportunities brought by agribusiness and take advantage of loans available to support various agricultural projects.
SCGS has also stimulated the development of agriculture in 30 regions countywide including Zanzibar.
TADB interventions in the sector pave a way for smallholder farmers to be more resilient and increase employment through agriculture.
Since its inception, SCGS has touched lives of a total of 1,155 women and approximately 5,374 young people under the age of 35 who have benefited from the funding arrangement for smallholder farmers involving in paddy, sunflower, tea, vegetables and fruits, cashews, maize, sugar cane and coffee cultivation.
The scheme also benefited farmers engaging in poultry farming and fishing.
TADB aims to continue stimulating investment in the agricultural sector in collaboration with various stakeholders.