CRDB bank says it is well committed to helping farmers to access loans so that they invest in the agricultural sector to boost their economies.
CRDB Managing Director, Abdulmajid Nsekela said here recently that his financial institution has been supporting farmers countrywide so that their investment in the sector would help to raise the country’s economy.
He was speaking at a workshop convened by various stakeholders in the agricultural sector, including representatives from financial institutions, smallholder and medium farmers, Private Equity Funds as well as agricultural companies among others.
According to Mr Nsekela, CRDB has been issuing loans for commercial farming to complement the government’s effort and support towards ensuring that the sector employs many nationals and improved as a source of food security in the country.
“I believe after this workshop, our bank will understand more challenges facing farmers and see how best we can widen our lending to them,’’ he noted, while addressing reporters on the sidelines of the workshop.
Agriculture is the backbone of the economy, but faces a number of constraints holding back its potential contribution to promoting growth and reducing poverty.
Tanzania’s agriculture is dominated by smallholder farmers and it employs over 70per cent of Tanzanians, most of whom are women, and contribute one third of Gross Domestic Product (GDP).
However, there are still few incentives from commercial banks to lend to the agricultural sector, but recent reforms by the government have impacted significantly on the agriculture sector, which is being opened up to private investment in production and processing, input importation and distribution, and agricultural marketing.
At the workshop, the Coordinator of the United States Agency for International Development (USAID), Professor David Nyange said the Dodoma workshop aimed at ensuring there was availability of capital to farmers so that they can invest heavily in the sector.
“That is why we have invited representatives of financial institutions in a bid to ensuring that loans are obtained for our farmers,’’ he noted.
Even as such initiatives continue, the government recognizes the pivotal role of the agricultural sector, both in terms of economic growth and poverty reduction.
The country’s second National Strategy for Growth and Reduction of Poverty stresses that agriculture can and should play a more important role in supporting Tanzania’s economic transformation and in lifting many poor people out of poverty.
