Agricultural financing gets massive boost

KATARE MBASHIRU

THE National Microfinance Bank (NMB) has injected 500bn/- in its new five year strategy aiming at revamping agricultural financing in the country.

Dubbed ‘AgriBiashara’, the multi-billion strategy will ensure that it improves the agricultural sector in the country, according to NMB Managing Director (MD), Ineke Bussemaker. With the new strategy, NMB adopts the value chain approach while expanding its activities in agriculture sector by increasing the number of crops from the previous 5 to more than 12.

According to the bank’s Chief Agribusiness Officer, Seif Ahmed, the Bank financing in agriculture will focus not only to primary agricultural production but also input suppliers, traders, processors, importers and exporters.

The bank’s officials confirmed at launch of the AgriBiashara business plan yesterday that under the new approach, at least 500bn/- had been set aside to provide credit to agriculture in the country for the coming five years.

In this year alone, NMB, which has 180 branches countrywide, is expected to spend 270bn/-, according to the head of Agribusiness, Renatus Mushi.

According to the MD, the finance solution that facilitates access to credit is expected to aid farmers in achieving improved cultivation practices, higher yields and ultimately increased household income while increasing the export volume of agriculture products.

Ms Bussemaker, who was speaking at the launch of the new plan, said her bank recognises the important role the agricultural sector plays in the country’s economy as well as deliberate efforts to expand the financing and designing products and services targeting at developing the sector.

“Access to credit has been a major stumbling block in allowing players in agriculture to be employed in the sector and its value chain,’’ she said adding: “The new plan and structure of agribusiness that we are launching today will provide an innovative solution in access to financing in the agricultural sector.’’ Ms Bussemaker added that with 180 branches countrywide, NMB was reaching over 600,000 smallholder farmers by financing their crop production.

In the new strategy, the bank is also targeting larger commercial farmers, input suppliers, processors, traders and other players in the agribusiness value chain. Agriculture is the back bone of the country’s economy.

It contributes about 70 percent of the rural household’s income while employing over 75 percent of the Tanzanian population as well as contributing to 26 percent to the country’s Gross Domestic Product (GDP).