Posted: Wednesday April 30, 2008 4:22 AM BT
The Tanzania National Microfinance Bank (NMB) in partnership with the Alliance for a Green Revolution in Africa (Agra) has unveiled a $6.1m farm input credit scheme to target poor Tanzanian farmers and improve the country's network of rural agro-dealers. A memorandum of understanding signed in Dodoma, Tanzania, between the two institutions says the scheme will boost subsistence farming in five pilot districts by providing access to farm inputs.
Author: Anna Rosenberg
NMB will provide a total of $5m for loans that Agra and the Financial Sector Deepening Trust (FSDT), a Tanzanian government finance initiative, will underwrite by s1.1m in ring-fenced guarantees.
Tanzania's agriculture minister, Stephen Wassira, describes Agra's initiative as "admirable" in attempting to kick-start a green revolution in the country. Through the farm input credit scheme, farmers will be able to access fertilisers and seeds at affordable prices.
The Tanzanian pilot project will be scaled up nationally by NMB and partners in the next two years. NMB is the largest bank in Tanzania by customer base and branch network. With 120 branches, it covers more than 80% of the country's districts, and it is more represented in rural areas than any other bank.
