The Tanzania National Microfinance Bank (NMB) has joined together with Alliance for a Green Revolution in Africa (Agra) in a $6 million dollar deal to benefit Tanzanian farmers. The deal is an input credit scheme that is aimed at boosting subsistence farmers in five pilot districts to access farm inputs.
NMB will provide a total of $5 million for loans to be made available to agro-dealers in the districts, while Agra and the Financial Sector Deepening Trust (FSDT), a Tanzanian government finance initiative, will provide $1.1 million in a guarantee fund to help reduce the risk of lending by NMB to agro-dealers.
NMB will implement a credit facility for trained and certified local agro-dealers in the five districts – Songea Rural, Mbeya Rural, Mbarali, Mufindi, and Kilombero. The pilot project will be scaled up nationally by NMB and partners over the next two years. This will lead to greater uptake of improved seeds and fertilizers as well as higher farm productivity and food security for farmers.
Stephen Wassira, Minister for Agriculture, Food Security and Co-operatives told The East African that the move by Agra was commendable in trying to bring about a green revolution in the country by involving all stakeholders. “Tanzania is ready for a green revolution and we believe our partnership with Agra and others will help achieve it,” Wassira said.
The plan is to get farm inputs such as seeds and fertilizers closer to farmers. Through the farm input credit scheme, farmers will be able to access fertilizers and seeds at affordable prices and cultivate on time, hence boosting farm yields and income.
Agra is working across Africa with local partners to help millions of small-scale farmers and their families lift themselves from poverty and hunger through practical solutions that significantly boost farm productivity. In Tanzania the agriculture sector is highly under-capitalized according to experts and accounts for only 1% of loans issued. As a result, less than 15% of farmers use improved seeds and fertilizers.
