AS the climax of Farmers' Day (Nanenane) approaches, the
Boosting agriculture productivity is among priorities that the
In value-added terms, agriculture generates 29 per cent of gross domestic product (GDP), industry 24 per cent and services 47 per cent. With only two years since it started financing the agricultural sector, its progress has been remarkable. The bank has managed to develop the right products and services to reach farmers of different categories.
The NMB Agribusiness Manager, Mr Isaack Masusu, said in an interview that the bank has selected few key commodities in some areas in order to be closer and serve farmers better.
For example, the bank has been focusing in enhancing knowledge and deepening understanding on efficient farming skills and this has proved to be the best way of improving productivity in the sector.
The Nanenane celebrations going on across the country is a unique opportunity for farmers to access NMB agriculture products and services to boost output, individual incomes and economic growth.
"With the largest branch network, NMB will be available and present in the seven agriculture zones designed to serve better farmers," he said. For example NMB is financing sugarcane farmers in Turiani and Kilombero, but also tea growers in Lushoto as well as barley farmers in Arusha and West Kilimanjaro.
The same is the case with tobacco growing in Tabora, maize cultivation in Rukwa and coffee farming in the southern highlands. Similarly, the available statistics show that between 16 to 17 per cent of farmers in the country, were the only ones making use of fertilizers and improved seeds.
It is from this background the
"NMB agriculture financing has been a success due to continuous investment in knowledge, new product innovations and partnerships with key stakeholders which ultimately brings tailor made pool of products that are relevant to market needs and agribusiness value chains," he said.
The current portfolio of products range from upstream to downstream, financing from individual farmers, small, medium, large and cooperatives including agriculture input suppliers, agro processors, traders and exporters which allow agribusiness sectors to grow and create wealth for citizens.
The products offered in the scheme by the
To ensure the seminars are successful, NMB has been working closely with other stakeholders like agriculture research institutes and dealers in farm inputs so that they may understand the right time to provide farmers with the farming tools.
The Warehouse Receipt financing is a working capital facility for the purchase of non-perishable commodities like coffee, cotton, maize, cashew nut, sunflower, sesame, cocoa and other crops which are stored in approved warehouses.
The stored crop in the controlled and licenced warehouses by Tanzania Warehouse Receipt Licensing Board (TWLB) is the collateral for the loan which is assigned to the bank through warehouse receipts.
NMB can now provide funds to enable you to continue preparing for the next crop whilst your commodities are being sold. These are loans given to registered farmer groups, individual farmers, commodity traders and businessmen dealing with non-perishable commodities like coffee, maize and cashew nut. Some of the beneficiaries of the warehouse receipt financing are the registered farmer groups or primary cooperative societies or agricultural marketing cooperative societies (AMCOS), large farmers, local and International Trading Companies. The warehouse receipt system has several benefits including flexibility to farmers or primary producers to sell their produce when the market offers good price, provide ample time and flexibility for primary producers to purchase raw materials.
Others are provision of good storage and reduction of postharvest losses, easy access to credit for small and medium sized traders and producers, promoting quality of crops and facilitating price discoveries for farmers through participation in price setting and avoid being price takers. The agro dealer input loan scheme is designed to facilitate or extend working capital to agriculture inputs stockist to purchase agriculture inputs and sell to farmers. The facility is given to traders to enable them withdraw their NMB business account balances up to a certain approved limit as overdraft. The objective is to ensure farmers get inputs nearby, without shortages in supply and on the right time.
Some of the benefits of NMB Agro-dealer Input financing are to provide extra working capital for a short period to agro dealers, available anytime, when applied for, flexible and easy to operate.
The scheme works under arrangements of three parties including the bank as the financier, the buyer or processors (Off-taker) and the farmer. So far out grower loans have been extended to sugar cane farmers, barley, tea and tobacco farmers. Thus "nanenane" remains a unique opportunity for farmers to visit and access NMB range of products and services offered and designed to make agriculture sector contribution go up.
It was established under the National Microfinance Bank Limited Incorporation Act of 1997, following the break-up of the old
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