Tanzanian agricultural SMEs 'need more finance outlets'
Rural and agricultural small and medium-sized enterprises (SMEs) in Tanzania have only a limited number of outlets from which to access to finance to develop their operations.Rural and agricultural small and medium-sized enterprises (SMEs) in Tanzania have only a limited number of outlets from which to access to finance to develop their operations.
This is one conclusion of a new study of Agriculture Finance Markets Scoping (AGFIMS), which has been released at an event hosted by the Bank of Tanzania, the Daily News reports.
Development of agriculture is hindered by insufficient infrastructure and poorly-developed markets, the research found, while agricultural SMEs also complained of complicated procedures when attempting to obtain loans or other forms of finance.
Agriculture is a leading contributor to Tanzania's gross domestic product - making up 28.15 percent according to figures from the World Bank - and the government has raised investment in this area to seven percent of its overall budget.
The AGFIMS report showed banks in Tanzania - which is the first country to undertake the study - are reluctant to increase their offerings to the agriculture industry as they feel it is too high-risk.