Tanzanian farmers 'need improved access to loans'
Banks need to help improve access to finance for agricultural workers in Tanzania, according to a new report.Banks need to help improve access to finance for agricultural workers in Tanzania, according to a new report.
Frederic Kilcher, researcher with Match Maker Associates, recently presented a new report on Access, Distribution and Application of Agro-inputs in Tanzania, which was commissioned by the Agriculture Council of Tanzania (ACT) and Best Ac, the Tanzania Daily News reports.
He stated that financial institutions should adopt loan-friendly portfolios as current solutions do not address the seasonal needs of farmers.
Currently, banks take around six to eight months to process loans, which means many agricultural workers do not receive them in time to buy inputs.
"ACT should make use of its strong network to ensure that financial sector reforms happen," said Mr Kilcher.
He urged the organisation to push for ten percent of next year's budget to be allocated to agriculture in Tanzania.
According to data from the World Bank, agriculture accounted for 28.15 per cent of Tanzania's gross domestic product in 2010.