THE Tanzania Agriculture Development Bank (TADB) will be incorporated before end of this month in a move designed to assist farmers in accessing long-term loans.
According to the Bank of Tanzania (BoT) Monetary Policy Statement (MPS) June 2012, the draft memorandum and articles of association for the TADB has been completed and would be followed by the registration process. "The establishment of the facility in the country will be a result of efforts that started in 2000, when proposals to have a farmers' bank started," read the BoT statement.
Presenting the 2012/13 budget proposals in the National Assembly earlier this month in Dodoma, the Minister of Finance and Economic Affairs, Dr William Mgimwa, said the government has allocated 40bn/- for the TADB and the capital would be raised to 100bn/-.
To enhance the agricultural sector growth which is less than 4.5 per cent per a year, there is the need to solve among other constraints, the availability of rural credit, improved property rights and infrastructure, the Economic and Social Research Foundation (ESRF) report has portrayed.
According to the ESRF report released last month on the role of financial sector in agriculture development and industrialization, securing collateral are among problems in the sector.