Farmers in Tanzania are set to benefit from a Memorandum of Understanding (MoU) between Stanbic Bank Tanzania and Agricom Africa (AA), an agricultural solutions provider in Tanzania that aims at modernising and growing the country’s agriculture sector through asset financing and access to agri-technology.
According to the MoU, beneficiaries will enjoy Agricom Africa’s value addition technologies, while Stanbic Bank will extend up to 80 percent financing, payable over some of the longest terms (up to 60 months) in the market.
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John Mosha, Stanbic Head of Vehicle and Asset Financing said the collaboration will empower farmers with vehicle and asset financing facilities, including loans for agri-technology and equipment purchases, farm equipment leases among other options, making them not only more financially liquid and productive but also farm-smart.
“This partnership is going to have a transformative impact by ensuring access to modernised tools of production, farmers can automate their farm activities, unlock their agribusiness potential, and scale up their operations, ultimately contributing to Tanzania’s agricultural tradability,” said Mosha.
Extending footprint in the agricultural sector
Fredrick Max, Head of Business and Commercial Banking at Stanbic said that the bank have been doing asset financing and supporting other sectors for a long time, and are now have a strategy to increase footprint in the agricultural sector.
“I would like to emphasize that our financing solutions are meticulously structured to address the production, processing, and logistics needs of agribusinesses. We firmly believe that modernisation and automation will enable Tanzania’s agriculture sector to achieve the envisioned 10 percent annual growth, driving the nation’s socio-economic development,” said Max.
Reliable and innovative agri-equipment
On his part, Alex Duffar, Agricom’s Group Chief Executive Officer said that the MoU would provide farmers with enhanced access to reliable and innovative agri-equipment, offering a coordinated quick turnaround time on loan applications, ensuring that farmers can swiftly benefit from quality equipment on their farms.
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“Agriculture plays a pivotal role in our nation’s growth. By accelerating mechanization in the sector, we can pave the way for a tradeable economy, considering its significant contribution of 65 percent to our Gross domestic product,” said Duffar.
He added that Mechanization serves as a key driver for agri-led industrial development and lays the foundation for sustainable food systems, fostering long-term food security in Southern and Eastern Africa
