TADB releases Sh7.7 billion for new coffee season in Kagera

Dar es Salaam. The Tanzania Agriculture Development Bank (TADB) has released Sh7. 7billion to coffee farmers cooperative unions in Kagera (KCU and KDCU) for the 2020/21 season.

TADB managing director Mr Japhet Justine presented the amount through Kagera Regional Commissioner (KCU) at the launch of new coffee season.

"We encourage farmers to join unions and open bank accounts so that they are paid through banks which is a very beneficial system and curbs the risk of farmers being robbed,” he said.

Explaining further, Mr Justin stressed that when they started unions in Kagera, farmers had huge debts of up to Sh7 billion, so far the KDCU has no debt and KCU is set clear its debts soon.

 "So we would like the farmers unions to stand and maintain themselves better.  We need to facilitate these unions for the economic development of the smallholder farmers."

According to him, the bank will continue being a major stakeholder to farmers adding that for three years they have donated motorcycles to some unions Luicho and Nyakatuntu AMCOS to facilitate their operations.

He noted that the bank has now reduced interest rates from 12 percent to 9 per cent due to their efficiency in production and good loan management and with this reduction it will assist in reducing costs and increase productivity for farmers.

KDCU manager Mr Oscar Dominick said despite some challenges such as Covid-19, they intend  to buy coffee at Sh1200 per kg which is an increase from Sh1100 that was paid last season.

“This price is good for farmers as the world market price now ranges between Sh850 and Sh867, we appreciate the government for enabling this, " he said.

Kagera Regional Commissioner Marco Gaguti said that so far the region produces 68 per cent  of bananas in the country, 45 per cent of coffee comes from Kagera.

“We collected 52 million Kg of coffee which fetched Sh 84 billion in 2019/20 season and the goal for 2020/21 is to collect 60 million kilograms,” he said.