Tanzania farmers set to benefit from credit guarantee

Dar es Salaam, Tanzania:

Finca Microfinance Bank signed a memorandum of understanding with Private Agricultural Sector Support (PASS) yesterday, allowing the latter to offer a credit guarantee of 20-80 percent for small-scale farmers who borrow from the financial institution. 

Finca joins a group of 14 other institutions that partner with PASS Trust to help Tanzanian farmers get funding.

Finca Tanzania’s chief executive officer, Mr Edward Talawa said that the agribusiness credits will be issued digitally.

“All qualified applicants will be able to apply and access credit services at their fingertips through their mobile phones, wherever they are,” he said.

This, he said, is part of the lender’s target of ensuring efficient financial service delivery throughout the agricultural value chain.

As a result, farmers will be able to afford significant farming inputs, production and harvesting equipment and thus increase value and productivity.

“This is not the first digital service provided by Finca but it’s special because it focuses mainly on agribusiness financing,” said Mr Talawa.

The managing director of PASS Trust, Mr Yohane Kaduma, said for about 22 years, the organisation has empowered more than 3.4 million entrepreneurs and extended loans valued at Sh1.43 trillion.

“Women made up 46 percent of all the beneficiaries. A total of about 63,156 businesses involved in products and services in the agricultural value chain have benefited through this guarantee,” he said.

Mr Kaduma applauded Finca’s decision to partner with PASS Trust in helping small scale farmers by topping up inadequate collateral.

PASS is a facility established in 2000 to stimulate investment and growth in commercial agriculture and related sectors.

“The PASS Trust is proud to have created approximately 2.7 million job opportunities that have improved the lives of Tanzanians through the agribusiness revolution,” said Mr Kaduma.