Tuesday, June 20, 2023

New Taha, Trias partnership sees paradigm shift in lending to small-scale farmers

 




Summary

·         Taha in collaboration with Trias had initiated a revolving fund with seed money amounting to Euro 25,000 (nearly Sh62 million) with an eye to enable small-scale farmers to access soft loans without collateral

Dar es Salaam. A dynamic partnership between local and international organizations has brought about an innovative idea to close the smallholder farmers’ financing gap and improve their livelihoods.

Taha in collaboration with Trias had initiated a revolving fund with seed money amounting to Euro 25,000 (nearly Sh62 million) with an eye to enable small-scale farmers to access soft loans without collateral.

“As it happened, Taha approached the Equity Bank to develop a simple system with the ultimate goal of easing smallholder farmers’ access to finance and creating pathways out of poverty," said Taha chief development manager, Mr Anthony Chamanga told a visiting high profile Trias mission.

Indeed, five years later, the initiative turned out to be a seed of change, bringing about a paradigm shift in lending peasants, as it offers a real opportunity to transform the financing landscape for smallholder farmers.

“The model has worked successfully in transforming hundreds of small-scale horticultural growers in Arusha to be eligible for bank loans, prompting Equity bank to see the viability of lending to them” Mr Chamanga told the delegation.

Indeed, official data shows that the revolving fund had surged and was able to issue Sh 167 million in loans to over 200 small-scale farmers in Arusha to invest in horticulture farming.

“And Taha through its digital platforms has been useful in giving small-scale farmers access to locally tailored information on market and pricing trends and crop advice that assists farmers in achieving higher yields and getting their crops to the right buyers” he noted.

Commenting, the Trias Worldwide Director General, Mr Lode Delbare termed Taha’s achievement in supporting youth and women to venture into horticulture as remarkable.

“It feels good to see Taha’s practical intervention in the grassroots. Be assured we will continue collaboration to improve livelihoods for small-scale farmers. This is our ambition and conviction” Mr. Delbare said.

Trias boss implored Taha to keep its members, mostly smallholder farmers at the core of the organization in a bid to maintain its vibrant status.

For his part, Taha board chairman, Mr Zebadiah Moshi thanked Trias for its support that brought about real impact on livelihoods to a critical mass of youth and women in Tanzania mainland and Zanzibar.

“Taha is your right partner, fortunately we are in Trias’ DNA. As they say, see is believing, I’m sure this will help you to make informed decisions on our partnership” Mr Moshi said.

Ms Ritha Tarimo, country Coordinator, Tanzania Trias underscored the importance of keeping small-scale farmers, particularly youth and women at the heart of the future partnership.

Trias facilitated the establishment of Taha’s membership unit to improve services to different member categories, bankrolled a construction of a horticulture knowledge hub in Zanzibar and its support marked a massive impact in terms of horticultural crops output and income for growers in Zanzibar

Thanks to the “Make it Grow!” Horticulture for Sustainable Economic Growth in Zanzibar project implemented by Taha in partnership with Trias and AHA under the four years European Union (EU) funded flagship programme, AGRI-CONNECT.

Indeed, formal statistics indicate that the Zanzibar horticultural farmers have recorded a 100 percent yield surge in the period under review, depending on the type of crops, technologies applied and geographical areas.

The programme implemented in 66 villages, 47 out of them in Unguja and 19 others in Pemba with an eye to reach 10,100 beneficiaries among them 6,600 being farmers comprising 60 percent women and 40 percent youth, has seen tomato productivity increased to two metric tonnes in an acre per season, up from one metric tonne, doubling the income for growers.

 

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