NMB Bank and Agricom Africa have forged a dynamic partnership aimed at enabling small, medium, and large-scale farmers to access loans for tractors and other essential farm equipment, ultimately bolstering productivity and driving transformative changes in the agricultural industry.
Mr. Filbert Mponzi, Chief of Retail Banking at NMB, announced this collaboration on Tuesday, emphasizing that farmers seeking agricultural tools through this arrangement will be required to make a 20% down payment. The objective of the partnership is to promote and facilitate revolutionary advancements in agriculture across all levels of farming.
Under this program, NMB will cover the remaining 80% of the loan amount, providing borrowers with the flexibility to repay the loan either during the specific crop season or through installments from alternative income sources. Through this agreement, farmers will gain access to loans for tractors, agricultural tools, and inputs—resources supplied by Agricom.
The agricultural sector in Tanzania currently employs approximately 70% of the workforce and contributes 26% to the national income. Alex Duffar, CEO of Agricom Africa, expressed his optimism about the collaboration between the two entities, recognizing their extensive network of over 7,000 small, medium, and large-scale customers and NMB's wide branch coverage. This partnership is expected to foster the development of the agricultural sector in Tanzania.
Mr. Duffar emphasized that Agricom offers a wide range of products tailored to meet the diverse needs of stakeholders in the agricultural value chain. Their expertise lies in providing inputs and essential tools that cover every critical stage of farming, from land preparation and irrigation to planting, weeding, crop maintenance, and post-harvest storage.
The strategic alliance between Agricom, with its 40+ authorized distributors and 13 branches, and NMB, with its extensive branch network across the country, promises rapid growth in the agricultural sector, benefiting individuals and the nation as a whole.
Highlighting NMB Bank's commitment to the agricultural sector, Mr. Nsolo Mlozi, Head of the Agri-Business Department at NMB, noted that the bank has made significant investments by providing billions in loans to stakeholders in the industry. This partnership with Agricom Africa represents an important milestone in their ongoing efforts to support and empower farmers across Tanzania.
As this collaborative initiative gains momentum, it is expected to unlock new opportunities for farmers, enhance agricultural productivity, and contribute to the overall prosperity and sustainable development of Tanzania's agricultural sector.