Access to Finance Tanzania

moderated by Hilda Okoth

AgriProFocus Tanzania and members such as TRIAS and TAHA have for the past years co-organized agri-finance fairs that aimed at bridging the financial gap in agribusiness by linking smallholder farmers and the financiers. The fairs attracted a lot of interest from farmers and facilitated deals between the farms and firms. However, its time for change. Inspired by the Netherlands Platform of Inclusive Finance (NPM) dissemination workshop for the study titled Finance for smallholder farmers: Opportunities and risk management by linking financial institutions and producer organizations, AgriProFocus redirects its focus from linking to learning and leadership in order to address financial literacy among agripreneurs.

Activities going forward: 

1. Finance learning sessions on climate smart agriculture, circular agribusiness, nutrition security and inclusiveness profiling changemakers 

2. Agri-finance learning labs and business to business meetings 


Posted By in AgriProFocus Tanzania
Posted 28 November 2017 at 06:38

THE MINISTER OF AGRICULTURE: BANKS SHOULD GIVE LOANS TO FOOD PROCESSORS AND BUYERS

Minister of Agriculture Hon. Dr. Charles Tizeba wants financial institutions including the bank for agriculture, CRDB and NMB to provide loans to food processors and buyers of agricultural products and farmers since they depend on one another. 

The minister says that on a Television program of Tanzania Broadcasting Corporation (TBC-1) named Tunatekeleza (which means "we are implementing") that aired every thursday, and  said farmers and agriculture stakeholders if they are provided with loans they can make agriculture more productive.

"Buyers and processors of agricultural products has a great opportunity to increase our market for Tanzanian farmers" Says Hon. Dr. Charles Tizeba.

Also the minister congratulate the CRDB and NMB banks for their tremendous support towards farmers and also wants farmers to form groups so that it will be easier for them to get loans. 

Moreover, the minister wants farmers

... Read more

Ally Cosmas Salute hon. Dr Charles tizeba, to recognize the overwhelming contribution of the farmers and other agriculture stakeholders for development of our country, thanks for the motivation and desire to help we small farmers and food processors through this financial institutions together we can bring change and quicken the economic growth of our country. we have ceaseless struggle on farming agenda.

1 month 3 weeks ago

Tatah Susan Victoria Gama, thanks very much for sharing  as this article falls in line with the main goals of the  4days GAIEXPO in Tübingen -Germany  August 9 - 12, 2018 focused on Agriculture, Finance and development.  Contrary to banks, we see the Diaspora as potentials to invest in this sector by granting loans. therefore our aim is to mobilize the Diaspora to be loan givers to boast up the agricultural sector in sub-Sahara Africa. The focus country for the International Expo is Tanzania. Africa shall feed the world in the nearest future but this dream will only come true if farmers in homeland and the Diaspora work together. One of the most important project during the Expo days will be  creating the p2pnet - private to private network aim at providing small loans and education to farmers back at home.

1 month 2 weeks ago

Tatah Susan Victoria Gama, you can be of great help, we need a correspondent in Tanzania, we need you! contact me at www.gaiexpo.com

1 month 2 weeks ago

Tatah Susan Great initiative hon. Dr Charles tizeba. We from gaiexpo.com are on board, to mobilize the Diaspora to be loan givers.

1 month 2 weeks ago

Victoria Gama Thank you so much Tatah Susan for the opportunity you shared with us, I will contact you ASAP. 

1 month 2 weeks ago

Posted By in AgriProFocus Uganda
Posted 29 August 2016 at 08:50

FREE information on sources of finance

It is difficult to access financing in Uganda, let alone know where to find the right type of finance for your business. We try to make this process easier. On our sister website: www.inachee.biz we regularly profile (FREE) a number of alternative sources of finance like venture capital, private equity and grants.

http://www.inachee.biz/

Denye Ronald What i know for sure your doing good job educating communities on how to start a business at local level.

10 months 2 weeks ago

Posted By in Finance Worldwide
Posted 8 July 2016 at 10:39

Equity fastest growing bank in Africa, survey

By Bob Koigi, Africa Business Communities, 6 July 2016.

Kenya’s Equity Bank has been ranked the fastest rising bank in Africa by the Banker, a publication of Financial Times which ranks the Top 1,000 banks globally.

This has seen the bank now join the league of the 25 largest lenders in the continent. Equity Bank that has operations in Tanzania, South Sudan, Democratic Republic of Congo, Uganda and Rwanda last year recorded a core capital of $650million, a 29.8 percent growth

Kenya Commercial Bank, the other bank to feature prominently in the list was the third highest mover in Africa following a 10.9 per cent growth which saw it jump to position 961 globally up from 981 last year.

KCB, the largest bank in the country by asset base and number 808 in the world, now ranks 24th in Africa following a 2.2 per cent growth in tier 1 capital, which is used as the ranking standard.

“The relative strength of this performance can in part be attributed to

... Read more

Posted By in Finance Worldwide
Posted 8 July 2016 at 10:19

Standard Chartered bank launches digital roll out in 8 African countries

By Bob Koigi, Africa Business Communities, 6 July 2016


In an extensive digital roll out billed as one of its kind in Tanzania, Standard Chartered Bank has launched a mobile and online banking which also embraces the fingerprint technology.

The roll out in Tanzania is also happening across 7 other African countries and is targeting an estimated one million customers. “Supported by the Bank’s global-standard technology, clients will enjoy a consistent online experience across laptops, tablets or mobile phones, and the convenience of banking from the location of their choice,” said the bank in a statement

In Tanzania, customers are already downloading the new mobile application which is available to both Apple and Android users. The Bank’s Head of Retail Clients, Michael Shio, said with the new mobile application, customers could have a single view of their banking portfolio covering accounts, loans and debit card

... Read more

Posted By in AgriProFocus Tanzania
Posted 8 April 2016 at 05:31

Partner’s meeting: Smallholder access to finance

Following a study conducted by the Tanzania Horticultural Association, TAHA and VECO East Africa on saving and Credit models that have helped smallholder farmers access finance, the partners supporting the smallholders’ access to finance under the umbrella of AgriProFocus met to on 18th February to:

· Validate the study findings

· Share knowledge on other successful access to finance models

· Draw a dissemination plan for the study findings

Banks, non-bank financial institutions, informal models, agriculture leasing and Government financial agencies were identified as successful models. It was observed that the non-banks financial institutions and informal models such as Village community Banks (VICOBAs) and SACCOS were the most successful models. Despite being small and seen not to significantly contribute to development VICOBAs are a starting points for saving and lending. On the other hand, SACCOS

... Read more

Lascelles Chen

Small Holder Farmers Financing Using TIMIZA VIKOBA
July 31, 2017
The Timiza Vikoba product is accessible on the Airtel Tanzania e-money platform by dialing *150*60# and selecting Vikoba and then Timiza Vikoba.
The Grameen microfinance banking methodology is the basis of the Timiza Vikoba product and it can provide savings and loan services to groups of 5 to 100 members.
Product  Assumptions....
1) farmers are willing to form financial services groups of minimum 5 farmers and to use the loans as a group and to repay as a group.
2)  the loan:savings leverage is 2
Product Example...
If each farmer needs Tsh900th, then the total requirement for the group of 5 farmers is Tsh 4.5 million
Using a weekly savings of Tsh 80,000 (which is calculated at 0.018 of the total financing required)  for each farmer, the Timiza Vikoba product will provide the following...
1st loans in week #5 of Tsh 640,000 to each of the first 2 farmers, totalling Tsh 1.28 million.
2nd loans in week #7 of Tsh 960,000 to each of the next 2 farmers, totalling Tsh 1.92 million.
3rd loan in week #9 of Tsh 1.28 million to the 5th farmer in the group, who is the group chairperson.
The grand total of the loans is Tsh 4.48 million (which matches the total  funding requirement above of Tsh 4.5 million) and these funds are received over a 4 week period, i.e. from week #5 to week #9.
At the end of the group tenure of 24 weeks, each farmer will be refunded Tsh 1.92 million savings balance plus interest.
Notes...
1) the minimum group tenure is 24 weeks, so the group can continue on to a second farming cycle.
2) if the group is assisted thru a revolving loan fund, the leverage can be increased to 3 or 4.
3) the loan repayment period can be 4, 8 or 12 weeks
4) the group is registered on the Timiza Vikoba platform 4 weeks before the agricultural production cycle begins.
Questions & Answers....
1) Where did the Tzh900,000 figure come from?
TAHA manual on onion production which showed Tsh 1.8 million as the total cost to grow 1 acre of onions. We used half the cost for a half acre calculation example.
2) What if each farmer wants a different amount?
Just add together all of the different amounts...no problem. When the loans are disbursed each farmer will be repaying as per the loan value they took.
3) What if the group has more than 5 farmers?
The number of members/ farmers does not affect the calculations.
4) What are the percentages of the different loan amounts to the total?
The first and third loans are 29% each and the second loan is 42%.

5 months 3 weeks ago

Hilda Okoth Dear Lascelles Chen, Thank you for your comment. Could you please post this on a separate post and tell us more about the Smallholder Farmer Financing using Timiza Vikoba is all about. That way it will be more visible to many of our members. Remember to tag finance on your post. Please let me know if you need further help on this.
Regards,
Hilda

5 months 3 weeks ago

Lascelles Chen Hi Hilda.... thanks for the quick response... I have collaborated with Katarina before... I posted the document but when I checked again it was not there...please give me some training....

5 months 3 weeks ago

Posted By in Finance Worldwide
Posted 11 March 2016 at 08:31

Tigo Nivushe, Tanzania: 5 ways to build trust in digital lending

Original article by Cynthia Gordon, CGAP


Mobile technology has brought financial services to a huge part of the population, allowing them to be active participants in their countries’ economies. However, great challenges remain. For example, if you do not have a bank account your options for getting a loan are limited – only a fraction of the population can benefit. We believe that telecoms companies can play a fundamental role in addressing this challenge.

At Tigo, we are focused on responsibly filling the gap in access to credit for all kinds of customers. We plan to do this by keeping 5 key principles at the forefront of our business as we launch an innovative lending product in Tanzania called Tigo Nivushe which is based on the premise of ‘We will trust you until you give us a reason not to.’

  1. Include everyone: We decided that we would not require any security to lend – no rights to your mobile money, no grab-back from

... Read more

Posted By in Finance Worldwide
Posted 9 March 2016 at 01:20

The Landscape for Impact Investing in West Africa

GIIN, Dalberg, 27 July 2015


The Global Impact Investing Network (GIIN), in partnership with Open Capital Advisors, published the full release of The Landscape for Impact Investing in East Africa, a “state of the market” analysis of the impact investing industry in the region. The most comprehensive study of impact investment activity in East Africa to date, the full report includes detailed chapters for five countries—Kenya, Uganda, Tanzania, Ethiopia, and Rwanda—plus chapters on six additional countries in the region.

The report analyzes an active impact investing market across East Africa. Development finance institutions (DFIs) are a significant player in the market, having deployed nearly $8 billion in impact capital to date. However, many other types of investors—including VC/PE funds, foundations, family offices, commercial banks, and angel investor networks—are increasingly active, with these non-DFI impact investors having de

... Read more

Posted By in Finance Worldwide
Posted 4 March 2016 at 10:20

CGAP Research: Financial Diaries with Smallholder Families

How do small-scale agricultural producers manage their money, and what do their strategies tell us about their need for financial tools?

By: Jamie Anderson and Wajiha Ahmed, 25 February 2016


Globally there are approximately 500 million smallholder households - around 2 billion people - who rely on small-scale agriculture for their livelihoods. These households, who make up a large portion of the world's poor living on less than $2 per day, typically cultivate less than five acres of land and lack access to basic financial services. Improving their lives is critical to making a dent in global poverty and advancing financial inclusion.


For CGAP's Financial Diaries with Smallholder Households, researchers interviewed 270 total families in Mozambique, Pakistan, and Tanzania every two weeks for an entire calendar year, tracking their income, expenses, and agricultural production. The result was approximately 500,000 data points, combined w

... Read more
feb
18

Partner's meeting: Smallholders access to finance

Event posted by in AgriProFocus Tanzania
  18 February 2016, 09:00-16:00
  Arusha

Following a study conducted by the Tanzania Horticultural Association - TAHA and VECO E.A on the best Savings and Lending models that have helped farmers to access finance, the partners supporting smallholder access to finance under the umbrella of AgriProFocus Tanzania will meet to:

- Validate the study findings

- Share knowledge on other access to finance models that have worked for smallholder farmers

- Draw up a plan on the dissemination of the study findings and other lessons learnt from Partner organisations

Attendance is by invitation only.



Posted By in AgriProFocus Tanzania
Posted 8 August 2015 at 10:00

Tanzania Agricultural Development Bank (TADB) launched 

SOURCE
The Citizen,Dar es Salaam

President Jakaya Kikwete yesterday launched the Tanzania Agricultural Development Bank (TADB) with a pledge that the government will raise Sh800 billion capital requirement in eight years.

The good news for farmers comes two days after the Bank of Tanzania (BoT) gave the new kid on the block a certificate of operation after satisfying itself that the institution met all requirements.

Mr Kikwete said the government would raise Sh100 billion every year to ensure the bank’s 20-year strategic plan is effectively implemented.

“It is the plan of the government to ensure agriculture is transformed by addressing challenges that have been retarding productivity, such as lack of effective financing packages,” he said. “That is why I have asked the management to look into proper financing packages in order to accommodate different farmers.”

The President challenged farmers to improve their productivity t

... Read more

Hilda Okoth Thanks Juma for sharing this news. It surely is a major milestone in the agriculture sector.

2 years 5 months ago

Juma Bruno Ngomuo For sure....its also a challenge for emerging agro entrepreneurs of not just to make steps to get the money but to plan well and join forces and stay envisioned

2 years 5 months ago

Grace Nyantori I am wondering if the bank is going to open a branch in Mbeya and Southern Highland in general.I hope it is not going to be in Dar es Salaam only

2 years 5 months ago

Abdulikarim Ramadhani Faru how the bank will with a small farmer?

1 year 6 months ago

Fortunatus MLYANDENA TADB is our hope  for cooperative society in nothern part of our country.

10 months 4 weeks ago

may
08

Manyara Agri-finance fair

Event posted by in AgriProFocus Tanzania
  08 May 2015 - 09:00 to 09 May 2015 - 05:00
  Babati, Manyara - Kwaraa stadium

AgriProFocus Tanzania, in collaboration with SNV Netherlands Development Organisation, TAHA, Trias Tanzania, TCCIA, Mviwata and Fert are organizing the Agri-finance for the fifth time. This year, the fair will be held in Babati, Manyara at Kwaraa Stadium from 9:00am to 5:00pm daily.

The main objective of the fair is to link farmers/agribusinesses from Northern Tanzania to financial service providers and financial literacy. The fair will give farmers/agribusinesses the opportunity to increase their knowledge on different financial services offered by various companies, including Banks, Micro-finance institutions, insurance companies, knowledge institutes and NGOs. 

Parallel events during the Manyara Agri-finance fair;

i. Business to Business Forum & Networking Cocktail; The business forum will feature case presentations on the impacts of trade barriers to farmer entrepreneurs. It will also feature discussions on potential untapped opportunities in local and regional Maize and Onion Markets

... Read more


Posted By in Finance Worldwide
Posted 18 March 2015 at 07:58

Tanzania's Mobile Money Revolution

Kenya is often lauded as global pioneer when it comes to mobile money, but Tanzania is also making its mark. With growing competition and mobile money providers starting to make their systems interoperable, Tanzania is setting an example for others.

A new infographic from CGAP looks at Tanzania's mobile money revolution and examines how this fast-evolving market stacks up to Kenya.

Follow this link to see the full infographic.