Sh800bn to follow soon.
Launching the Tanzania Agricultural Development Bank (TADB) in Dar es Salaam yesterday, President Kikwete said that earlier it had been suggested that the money which was allocated to the agriculture sector under TIB agricultural loan account be used to establish the newly launched TADB.
He said the government had already disbursed a capital of Sh60 billion for the establishment of TADB, the bank which aims to enhance growth in the agriculture sector by offering loans and credit finance deals to farmers, many of whom do not have access to financial institutions.
“I had said earlier that EPA fund would be used to establish TADB but we have now decided that the money will remain at TIB so that it can benefit more Tanzanians who want to Invest in small scale industries,” he said. He said the bank will catalyse delivery of credit and related services to agricultural value chains, including a wide range of short, medium to long-term financing products to the agriculture sector.
“TADB is therefore expected to contribute towards achieving agricultural sector growth targets, in a sector said to be employing more than 70 per cent of the country’s workforce and accounting for most of the raw materials for local industries,” he said.
During the meeting, Kikwete insisted that Tanzanians should invest in their country and by 2025; the country’s development should be best reached at an individual’s level and so to attain the goal of middle income country.
Commenting on the establishment of TADB, Kikwete said agriculture is still the major sector that contribute 25 per cent of the Tanzania economy and 75 per cent of the Tanzania population depend on it.
He also said that Tanzania exports about 34 per cent of agricultural products while majority of the small scale farmers are using hand held equipment.
However, the output in agriculture has always been low because of various challenges such as poor equipment and poor agricultural skills. The worst part is money services to Tanzanian famers have never been certain.
This is why the Government decided to establish TADB so that small scale famers can be granted loans to enable them to take on modern farming.
Kikwete appealed to agriculture stakeholders and farmers to invest and focus on irrigation farming instead of depending on seasonal rainfalls which he said does not improve the sector.
Minister of Finance Saada Mkuya said TADB was established in 2008 and several procedures completed in 2014 with the aims to improve agricultural productivity to enable small scale farmers get loans.
She said after the establishment of the bank the government is in the process of disbursing a bond of Sh800 billion to enable them to offer loans to the farmers countrywide.
“TADB will start operating in regional basis in addition to directly assisting farmers, the bank will also have an advisory committee that will work with the government on increasing Tanzania’s exports,” she said.
The Director of Operations TADB Mr Thomas Samkyi said the bank strategic plan was of 20 years from 2016 -2036 and it will be implemented in 5-year-phases.
“We have a license dated 4th August 2015 and after one year preparations we are ready to commence operations in August 2016,” he said.
Chairperson of TADB Board of Directors, Rosebud Kulwijila said despite having managed to establish the bank, they were facing several challenges including shortage of capital. However, she insisted that they have various initiatives that will enable them stop depending on government funds.
SOURCE: THE GUARDIAN
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