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| Farmers tending their field |
The Tanzania Agricultural Development Bank (TADB) is scheduled to open
its doors for business in December this year.That has been confirmed by the
Bank of Tanzania (BoT).
The coming of the TADB is expected to assist farmers in accessing
inexpensive long-term loans for buying farm implements.
According to BoT, a study on the establishment of TADB has been conducted and the government
has given a go-ahead for the setting up
of the institution.
The latest BoT’s report states that the bank is expected to be
operational by December 2012 to play a key role in offering support to farmers.
The establishment of such an agricultural development financial
institution in the country will be a
result of efforts that started in 2000, when proposals to have a farmers’ bank
were put in motion.
But, it was officially graced by BoT, the financial regulator that
announced tenders for conducting a feasibility study for its establishment in
2009/2010.
The coming of TADB will be a milestone for the government, which is
endeavouring to speed up the growth of the agricultural sector through its
Kilimo Kwanza strategy.
An initial capital of US $500 million (7.5bn/-) is needed to launch the
bank. Agriculture accounts for about a quarter of the national income. It
provides employment opportunities to about 80 percent of people.
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| Capital-Intensive farming |
It has linkages with the non-farm sector through forward linkages to
agro-processing, consumption and export; provides raw materials to industries
and a market for manufactured goods.
Tanzania’s agriculture is dominated by smallholder farmers who cultivate an average farm sizes of between
0.9 hectare and three hectares each.
The country’s agriculture is rainfed agriculture. Food crop production
dominates the agriculture economy and 5.1 million hectares are cultivated
annually. Women constitute the main part of agricultural labour force.
The major constraint facing the agriculture sector is the falling
labour and land productivity due to application of poor technology, dependence
on unreliable and irregular weather conditions. Both crops and livestock are
adversely affected by periodical droughts.
Irrigation holds the key to stabilizing agricultural production in
Tanzania to improve food security, increase farmers’ productivity and incomes,
and also to produce higher valued crops such as vegetables and even flowers.
Source: The Citizen,www.thecitizen.co.tz, reported Sturmius Mtweve
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