NMB reaffirms commitment to agriculture financing

National Microfinance Bank (NMB) has reaffirmed its commitment to provide affordable and customer focused financial services to Tanzanians to realise sustainable economic benefits for the country.

The bank has pioneered major innovations in the market including mobile banking, Pesa Fasta and ATM based remittance products that target the unbanked population. 

According to NMB Head of Agribusiness Robert Pascal, the bank focus is to link the subsistence smallholder farmers with the rest of the value chain downstream.

“We also support the government through our branches to redeem agriculture input subsidy vouchers… NMB is making inroads in corporate banking, Treasury and transactional services like corporate payments, collections and trade finance,” said Mr Pascal, hinting that NMB aspires becoming the bank of choice for financing agriculture value chains.

Successful models for financing smallholder farmers have been designed and implemented for farmers operating in groups/cooperatives such as the use of warehouse receipt financing, out-grower loan schemes and NMB Kilimo loans for agriculture inputs.

NMB smallholder farmers financing has reached over 500,000 farming households through 500 farmer groups and cooperatives, with 116bn/- disbursed as loans to support agriculture. NMB has always been in the forefront looking solutions of the existing challenges in financing agriculture sector.

In efforts to enhance good governance and transparency, financial literacy and technological know-how, NMB partnered with Rabobank Foundation in June 2010 to establish NMB Foundation for Agricultural Development (NFAD) to address cooperative capacity challenges.

NFAD aims at strengthening the management of the farmers’ associations and cooperatives, with their members in terms of leadership, governance, marketing and financial skills.
Source: Daily News, reported from Dar es Salaam, Tanzania
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