Young people and women in Mainland Tanzania's agricultural sector will benefit from a new 10 billion/- loan guarantee facility. This initiative aims to improve access to financing, boost agricultural investment, increase productivity, and create employment opportunities.
The facility is expected to unlock more than 20 billion/- in total credit capacity, with particular emphasis on irrigation farming and other bankable agricultural projects.
The initiative follows an agreement signed over the weekend in Dodoma between the Agricultural Inputs Trust Fund (AGITF) and Azania Bank, paving the way for the rollout of loans to eligible beneficiaries.
AGITF Executive Director Mwanahiba Mzee and Azania Bank senior manager for agribusiness and sme banking, Augustino Matutu, signed the agreement on behalf of their respective institutions.
Speaking shortly after the signing ceremony, Mzee said the financing window was designed to help young people and women overcome barriers to agricultural credit while providing them with technical support and capacity-building opportunities to improve their businesses.
She said the initiative would also involve efforts to review relevant policies and regulations to create a more favourable environment for young people and women seeking capital to invest in agriculture.
“AGITF operates under the Ministry of Agriculture, and we will therefore continue to take the lead in lobbying decision-makers and policymakers to introduce favourable policies and regulations that enhance access to capital loans for youth and women in the agricultural sector,” she said.
Mzee reaffirmed the fund's commitment to supporting major bankable agricultural projects through its partnership with Azania Bank, noting that the initial TSh 10 billion facility would provide a foundation for expanding financing opportunities if the programme delivers the expected results.
“To start with, we have disbursed a 10bn/-loan guarantee facility targeting youth and women. However, we will expand the package after being satisfied with the effective utilisation of the loans by the intended beneficiaries,” she said.
She explained that the performance of beneficiaries would be assessed against key indicators, including job creation, increased agricultural production and productivity, and improved incomes.
According to Mzee, these measures would help determine whether the financing was achieving its intended purpose and whether additional resources should be committed to the programme.
The emphasis on irrigation farming is expected to support efforts to improve agricultural output by encouraging investment in production systems that can reduce dependence on rainfall and enable farmers to make better use of available land and water resources.
Matutu commended AGITF for selecting Azania Bank to facilitate the delivery of loans under the scheme, saying the partnership would strengthen the bank's contribution to agricultural development and financial inclusion.
He assured the fund that the bank had considerable experience in lending to farmers and entrepreneurs across the country and would work to ensure eligible beneficiaries accessed financing fairly and at favourable interest rates.
Matutu said Azania Bank had previously extended substantial financing to young entrepreneurs, including those involved in agricultural activities.
“For instance, over a period of five years, we provided loans worth 700bn/- to various youth entrepreneur groups, including farmers,” he said.
He added that the new partnership would build on that experience and expand opportunities for farmers to obtain the capital needed to improve production, invest in modern farming technologies and grow their businesses.
“This cooperation we are signing today with AGITF will further strengthen our commitment to extending more loans to boost the performance of the agricultural sector in the country,” he said.
Matutu further expressed confidence that the bank's extensive branch network would help extend financing opportunities beyond major urban centres, enabling farmers in rural communities to access credit closer to where they operate.
The partnership comes amid ongoing efforts to address financing constraints facing small-scale farmers, young entrepreneurs and women seeking to establish or expand agricultural enterprises.
By using a loan guarantee facility to support lending, the initiative is expected to encourage greater participation by financial institutions in agricultural financing while helping eligible borrowers access capital for productive investments.
The success of the programme will depend on effective loan utilisation, support for beneficiaries and the ability of financed projects to generate sustainable returns, create employment and increase agricultural output.
Through the collaboration, AGITF and Azania Bank aim to expand access to agricultural capital and strengthen the contribution of youth and women to the development of Tanzania's agricultural sector.
Ends
No comments :
Post a Comment