Tanzania: NMB sets up Sh500bn credit facility to support agriculture
It is part of the bank's new five-year strategy to revamp agricultural financing in the country.Tanzania's National Microfinance Bank (NMB) has launched a five-year strategy to revamp agricultural financing in the country.
"Access to credit has been a major stumbling block in allowing players in agriculture to be employed in the sector and its value chain. The new plan and structure of agribusiness financing which we are launching will provide an innovative solution in access to financing in agricultural sector," NMB's managing director Ineke Bussemaker told East African Business Week.
The initiative is expected to aid farmers in achieving improved cultivation practices, higher yields and ultimately increased household income while increasing the export volumes of agriculture products.
The "AgriBiashara" strategy includes a 500 billion shillings (€203.4 million) facility to provide credit to farmers, but also to input suppliers, traders, processors, importers and exporters.
NMB's Head of AgriBusiness Department Renatus Mushi said that the strategy focuses on the value chain rather than simply on the production, adding that the bank will allow financing through AMCOs and other farmers groups to expand the scope of crops.
Agriculture employs over 75 per cent of Tanzanians and contributes about 26 per cent to the country's GDP.