Equity sees major potential in agro-sector

Dar es Salaam. Small scale and medium-sized farmers will breathe a huge sigh of relief, following a decision by Equity Bank Tanzania Limited to extend lending to the agriculture sector.

The bank’s Public Relations Officer, Mr Protus Mwalongo, told The Citizen that the move will transform the lives of low income earners in Tanzania.

“The loans would be aimed at facilitating farmers involved in green house activities, purchasing modern agriculture equipment as well as curbing post-harvest losses,” he said.

Mr Mwalongo noted that since the introduction of loan farming, the portfolio had increased in value to more than Sh1 billion. He said the bank decided to venture into agriculture as a way of contributing to the sector.

“Agriculture is the mainstay of Tanzania’s economy and almost 70 per cent of the poor population rely on farming. Therefore, investing in agriculture is the best way of advancing the country’s economy,” he said.

Reports show that agricultural products make a large contribution to the country's foreign exchange earnings, with more than $1 billion in earnings from cash crop exports.

Equity Bank joins some major banking institutions in Tanzania that have recently directed their credit towards the agriculture sector.