Tanzania: NBC to Play More Role in Agriculture

Dar Es Salaam — The National Bank of Commerce (NBC) plans to form partnerships with the public and private sectors to improve agriculture. Mr Hans Balyamujura, the general manager with Agribusiness Africa for Absa Bank, which NBC is its subsidiary, said in an email response to questions that the partnerships would be undertaken through its agribusiness financing window.

"We do not, at any moment, think that we can solve all challenges facing farmers, processors and exporters, but we are open to form partnerships with public and private sectors to have a lasting impact while ensuring a competitive environment," he said.
Under the approach, the bank hopes to assist farmers to increase yields and link them to markets. It will also play a role in developing marketing infrastructure and transferring skills.According to him, for the bank to boost agriculture, NBC has directed its attention towards increasing access to finances for farmers.
The agribusiness window is aimed at increasing efficiency across the agricultural value chain.
He pointed out that Tanzania had a great opportunity to access international and regional markets.
To succeed, growers should be involved in moving agriculture away from subsistence farming to a commercial one.
That can be achieved through providing financial incentives to them.
Finding funds to get commercial farming off the ground in Tanzania is difficult because banks have been reluctant to lend money to agriculture because they perceive it to be extremely risky. They cite factors such vagaries of weather, pests, diseases and prices, small farm sizes and poor infrastructure as obstacles to agricultural development. According to Mr Balyamujura, partnering with various players in the agricultural value chain will help solve problems facing the sector.
Agriculture has to be driven by market demand. There must be a secure market for the commodity, and farmers should be able to produce crops at a profit.
Absa focuses on the full value chain in agriculture and its solutions include providing working capital.