FARMERS' BANK TO COMMENCE OPERATIONS IN THE NEXT FINANCIAL YEAR

Tanzania's Minister for Finance, Saada Mkuya

Tanzania Agricultural Development Bank (TADB) will commence operations in the next financial year, according to the Minister for Finance, Saada Mkuya.

The Ministry has selected and assigned the bank’s board of director to set ground for operations to commence.

The board will be responsible for making policies, regulations, prepare business plan and oversee the activities of the bank so that the government’s plan to increase agricultural production is achieved.

The government is the only shareholder of the bank, and is responsible to offer the seed capital of Tshs 100 billion and keep on allocating Tshs 100 billion in its annual budget to ensure the bank’s start-up capital reaches Tshs 800 billion.

“Through the bank, the government expects to see farmers have more access to capital loans both short and long term periods that will boost their agricultural activities and improve their household incomes as well as the country’s revenue in general,” Ms. Mkuya said.

She said the government projects a 10 percent increase in national income from the expected annual growth of the agricultural sector as a result of increased funding to farmers.

She also said the nation can expect increased employment, increased agricultural commodities for trade, decrease in rural-urban migration and availability of more agricultural food products across the country.