Dar es Salaam — The Private Agricultural Sector Support (Pass) has acquired a permit from the Bank of Tanzania (BoT) for it to start leasing and lending farm equipment and value-addition machines.
The project will start benefitting over 12,000 farmers, livestock keepers and fisheries stakeholders.
The firm, owned by Pass Trust, was issued a provisional licence by the BoT in March this year allowing it to commence operations.
Pass Leasing managing director Killo Lusewa told a press conference in the city yesterday that Sh12 billion has been set aside for the initial implementation of the project that is expected to reach 300 borrowers and letting clients in 2021 alone.
"Our target is to reach 3,000 borrowers and lend out at least Sh120 billion in the next five years," he told a press conference, expressing the Trust's readiness to add capital and secure more resources from other stakeholders.
Pass Leasing is the fourth company to provide such services according to the BoT certification and has entered agreement with manufacturers and sellers of equipment that support agricultural activities and value addition in agriculture, fisheries, livestock and beekeeping.
According to Mr Lusewa, individuals, companies and groups dealing in agriculture, fisheries, livestock and beekeeping, as well as food processors, are eligible to apply for farming equipment and machines that will add value to their goods.
"Applicants should apply for the equipment through the Pass Trust Dar es Salaam headquarters or zone offices located in Arusha, Morogoro, Kigoma, Mwanza, Mbeya and Mtwara. They can also apply via our website: " he said.
According to the director, upon being satisfied with the quality and price of the equipment among the contracted manufacturers and sellers, clients will be supposed to pay 20 percent of the cost and complete the remaining sum in one to three years.
"Clients should be able to confirm that they are farmers or take the equipment where there was a high demand. Unions, cooperatives and companies will need to have certificates of registrations and confirmation that they have been operating in the last three years in order to be considered," he said insisting that after provision of the loan clients will not be left alone.
Displaying the BoT certificate, Pass Trust managing director Anna Shanalingigwa said the leasing company will be launched in the third quarter of 2021.
"The country has been undergoing notable agricultural transformation, going from subsistence farming to agribusiness."
This requires more investment and modern technology is a reason for establishment of the company," she said.