In an exciting stride towards enhancing Tanzania's agricultural sector, Stanbic Bank Tanzania and Agricom Africa have come together in a strategic partnership. As a vanguard provider of agricultural solutions, Agricom Africa aligns perfectly with Stanbic Bank's financing prowess to jointly stimulate the sector's modernisation and growth.
As part of this Memorandum of Understanding (MoU) revealed recently, customers stand to gain a lot. They can avail of Agricom Africa's innovative technologies, while Stanbic Bank is prepared to offer financing of up to 80 percent. With repayment terms extending to 60 months, it is among the most generous offers in the market. John Mosha, the Head of Vehicle and Asset Financing at Stanbic, from Nane Nane Grounds in Mbeya city, stressed the transformative potential of this alliance. It seeks to provide farmers with comprehensive financial facilities, encompassing loans for procuring agri-technology, equipment, and leasing options, thereby increasing their financial stability, productivity, and technological adeptness.
He went on to explain that by ensuring farmers' access to modern production tools, they can automate their activities, fulfil their agribusiness potential, and expand their operations, thereby contributing significantly to Tanzania's agricultural sector. Fredrick Max, Stanbic's Head of Business and Commercial Banking, pointed out the bank's long-standing history in asset financing and supporting various sectors. Now, their focus is on enhancing their footprint in the agricultural sector.
He emphasised their well-structured financing solutions, designed to cater to agribusinesses' wide-ranging needs - from production to processing to logistics. He expressed confidence that the twin forces of modernisation and automation would help Tanzania's agriculture sector achieve the goal of 10 percent annual growth, thereby driving the nation's socio-economic development. Alex Duffar, Agricom's Group CEO, affirmed the MoU's impact on farmers, as it would ensure enhanced access to reliable and cutting-edge agri-equipment. The efficient loan application process is another highlight, enabling farmers to quickly integrate quality equipment into their farming practices.
Recognising agriculture's crucial role in Tanzania's growth, Duffar cited that accelerated mechanisation could shape a tradeable economy, considering agriculture's massive contribution of 65 percent to Tanzania's Gross Domestic Product. He also opined that mechanisation could pave the way for sustainable industrial development and long-term food security in Southern and Eastern Africa. The signing ceremony saw the presence of Mr. Juma Homera, the Regional Commissioner of Mbeya, who commended the southern highlands region's leading role in Tanzania's agriculture.
This agreement is set to add value to the agricultural sector, enabling farmers to switch from traditional farming practices to modern machinery.
Homera acknowledged the need for modern machinery in contemporary agriculture, expressing confidence that the partnership between Stanbic Bank and AgriCom would enhance agribusiness and align with the government's goal of increasing agricultural growth by 10 percent by 2030.