Africa-Press – Tanzania. TANZANIA Agricultural Development Bank (TADB) and Agricom Africa Limited (AAL) have signed a Memorandum of Understanding (MoU) that will allow farmers in the country to purchase tractors and other agri-equipment at affordable costs.
TADB’s Director of Finance and Resource Mobilisation, Mr Derick Lugemala, said that the use of modern and innovative farming tools such as tractors is a great step towards transforming the agriculture sector in the country.
“Our partnership with Agricom provides customers with two unique options that make it affordable for farmers to purchase the equipment,” Mr Lugemala said after signing the MoU yesterday.
The loan attracts an interest rate of 9.0 per cent a year. “This is a significant relief for farmers as some charges 18 per cent at normal commercial rates,” said Mr Lugemala.
TADB with collaboration with other banks had issued 370bn/- in loans to farmers. The amount financed over 128 mechanisation units, including; tractors, combine harvesters, sprayers and implementers.
“With this new partnership TADB expects to achieve even better results according to him,” he said. Agricom’s Group Chairperson Ms Angelina Ngalula said the major thrust of the MoU is to provide innovative solutions at all levels of agribusiness supply chain, contribute towards increased food and nutrition security in the country and ultimately improve farmers’ lives.
“Our main objective is to transform the way Tanzanians do agriculture, from subsistence farming to commercial farming, for the betterment of the farmer, and betterment of the country’s economy,” Ms Ngalula said.
Under the MoU TADB and Agricom will be able to loan farmers with Suraj tractors and Kubota combine harvesters, sugarcane loaders, maize threshers and balers. Agriculture employs nearly 70 per cent of the population.
