CRDB Bank has said it's ready to lend investors to build state-of-art-computerized cashew nuts warehouses to help farmers increase productivity and their wellbeing.
The bank's Managing Director, Abdulmajid Nsekela said under the initiative wants to see some of the warehouses are built in Ruangwa district to foster development.
"We are ready to work hand in hand with the government to make sure we implement construction of warehouses...I am assuring you Mr Prime Minister that we are ready," Mr Nsekela said prior for PM to officially open the bank first branch in Ruangwa, Lindi on Monday.
The CRDB chief, who is also a chairman of bankers association, said the warehouses will enable to increase farmers' productivity at the same time implementing further warehouse receipt programme.
The PM, Mr Majaliwa Kassim Majaliwa, said the government has already set aside 6.6bn/- for the construction of state-of-art cashew warehouse in Ruangwa.
The warehouse, according to him, will be the largest in the country.
The warehouses will also enable operation of cashew on commodity exchange trading floor which has failed to kick off due to improper warehousing system. The system should have the ability of sorting and grading the nuts at required standard and stored them on the right temperatures.
According to Tanzania Merchantile Exchange (TMX) having a proper warehousing system is a key to enable country's commodities to trade at TMX platform.
So far, two warehouses have been licensed by Warehouse Licensing Regulatory Board to operate in maize in Njombe and Iringa regions.
But the number, however, is too low since such facilities are supposed to be in every district.
Initial TMX wanted to start trading with cashew nuts but failed to secure proper standardised warehouses and turned to maize where recently started by linking buyers and sellers and trade 3000 tonnes.
CRDB was the first agricultural stakeholder that works to facilitate the implementation and operation of warehouse receipt system.
The bank said the system has impacted a great relief to farmers by easing accessing markets and maximize prices. Also enables the bank to use farmer commodities in the warehouse as collateral to secure a loan.
"This system proved to be a great relief to farmers by assuring markets and also drive away the need of farmers to sell their commodities at throw away prices," Mr Nsekela said.
The bank said up to last November had issued 16bn/- loans to enable cashew farmers to buy farm inputs plus sisal sacks for storing the nuts.
The loan, according to the bank, benefited 2,900 farmers in the cashew growing regions especially Lindi and Mtwara.
Mr Nsekela said out to the amount loaned to cashew farmers 7.5bn/- was issued to Tandahimba and Newala Cooperative Union (TANECU) for purchasing of sacks this season.
"I am glad to say that the loan repayment ratio is very encouraging," Mr Nsekela said.