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.
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
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