News in brief: Stanbic Bank Tanzania and Agricom Africa have partnered through a Memorandum of Understanding to modernize Tanzania’s agricultural sector, providing asset financing and access to agri-technology. The collaboration aims to empower farmers with financing for agri-tech and equipment, while enhancing their productivity and contributing to the country’s agricultural growth goals.
Stanbic Bank Tanzania and Agricom Africa (AA), have signed a Memorandum of Understanding to drive the modernisation and growth of Tanzaniaâs agricultural sector.
This is expected to be unlock asset financing and access to agri-technology. The partnership will see beneficiaries exploring Agricom Africaâs value-added technologies, while benefitting from Stanbic Bankâs financing. Stanbic Bank Tanzania will provide about 80% financing, which is payable for over 60 months in the market.
Head of Vehicle and Asset Financing of the bank, John Mosha, highlighted the transformative impact of the partnership during the presentation of the deal. He stated that the collaboration will empower farmers with vehicle and asset financing facilities.
Mosha mentioned that this will include loans for agri-technology and equipment purchases as well as leases to make farmers not only more financially liquid and productive, but also farm-smart.
The bank’s executive further remarked that access to modern tools will help farmers automate their farm activities and unlock agri-business potential. He also added that it would assist farmers scale up their operations while contributing to Tanzaniaâs agricultural tradability.
The Bankâs Head of Business and Commercial Banking, Fredrick Max, addressed the institutionâs input in the sector. He stated that Stanbic Bank has structured its financing solutions to address the entire chain of agri-business.
He restated the belief that modernisation and automation will enable Tanzaniaâs agriculture sector achieve the envisioned 10% annual growth. These actions form the bankâs strategy to increase its footprint in the agricultural sector.
Agricom Africaâs Group CEO, Alex Duffar, stressed the key beneficial areas to farmers in the collaboration. He said the MoU provides farmers with enhanced access to reliable, innovative agri-equipment as well as coordinated quick turnaround time on loan applications, with farmers benefiting from quality farming equipment.
He also noted the significance of the sector, which contributes 65% to the gross domestic product (GDP) of the Tanzanian economy. Duffar believes the partnership will foster long-term food security in Southern and Eastern Africa.
Also lauding the collaboration was the regional commissioner of Mbeya district, Mr. Juma Homera, who said that using modern machinery will lead to the success of agriculture on the continent.
He remarked that the agreement between the Bank and Agricom Africa, will enable farmers move away from traditional farming methods to modern machinery. This he notes will boost productivity and facilitate agri-business.
The Tanzanian economy is heavily based on agriculture, which in 2021 accounted for 28 per cent of its GDP.
