Role of private sector in financing agriculture key, says TADB

What you need to know:

The contribution of finance sector is to ensure grantees are offered for example when you come to TADB there is program a program of grantees.

Mbeya. The Tanzania Agricultural Development Bank has (TADB) highlighted various strategies to complement financing and boosting of the agricultural sector.
Speaking at the Farm Clinic symposium in Mbeya, TADB director of research and planning Mr Mzee Kilele said the role of private sector such as financial institutions, insurance companies and development banks is vital to address challenges and security issues faced by farmers.
He said that the contribution of finance sector is to ensure grantees are offered for example when you come to TADB there is program a program of grantees.
"So Sh150 billion has been released as loan to farmers, this means that grantee is another thing which is required in the market.”
He said loans are required, therefore it is important to attract private equity investment in order to grow, but unfortunate equity investment is too slow.
“Some African countries such as Nigeria have done well in equity investment,” he said.
According to him, TADB has for the past three season offered loan to farmers in the move is ensure agricultural trading is achieved and storage investment is also improved.
“This all points at how vital is the role of financial institutions in complementing government effort.