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| Managing Director of PASS Trust, Mr. Yohane Kaduma (left) and Mr. Kjetil Schie, Head of Cooperation at the Royal Norwegian Embassy - Representing the Norwegian government (right). |
Dar es Salaam, October 23, 2025 — Tanzania’s agricultural sector is set for a major transformation following the signing of a landmark agreement between the Royal Norwegian Embassy and the Private Agricultural Sector Support (PASS) Trust to implement the Soybean Value Chain Support Project.
The USD 4.8 million initiative — jointly funded through a USD 2.4 million grant from Norway and co-financed by PASS Trust’s credit guarantee mechanism — aims to strengthen the soybean value chain through innovation, inclusive finance, and climate-smart technologies.
Boosting Productivity and Empowering Farmers
The project focuses on Ruvuma Region, a key agricultural zone where soybean productivity has historically remained below 700 kilograms per hectare. Through access to improved seeds, mechanization, training, and structured market linkages, yields are expected to rise to over 3,000 kilograms per hectare, while farmer incomes are projected to increase by 40 percent.
Over 12,500 farmers will directly benefit from the programme, with at least 40 percent being women and youth. The project also aims to reduce post-harvest losses, enhance local processing capacity, and promote environmentally sustainable farming practices — ensuring that growth in the sector is both inclusive and resilient.
Innovating Through the Commodity Compact Model
At the heart of the initiative is PASS Trust’s innovative Commodity Compact Financing Model, which integrates finance, technology, and markets into one ecosystem. The model links farmers with processors, aggregators, and financial institutions through contract farming and guaranteed offtake agreements, while PASS’s credit guarantee mechanism helps de-risk lending for banks.
By aligning finance with technology and market access, the model ensures that smallholder farmers can operate within structured and predictable value chains — transforming agriculture from subsistence to sustainable enterprise.
Leaders Speak on the Partnership
During the signing ceremony held at PASS Trust headquarters in Dar es Salaam, Mr. Yohane Kaduma, Managing Director of PASS Trust, described the agreement as more than just a funding deal.
“It symbolizes a shared vision for inclusive, climate-resilient, and market-driven agricultural growth,” said Kaduma. “Through this partnership, we aim to transform Tanzania’s soybean sector into a driver of food security, import substitution, job creation, and sustainable rural development.”
He added that the initiative will not only uplift farmers but also serve as a blueprint for financing other strategic commodities such as sunflower, coffee, horticulture, and wheat.
Representing the Norwegian government, Mr. Kjetil Schie, Head of Cooperation at the Royal Norwegian Embassy, emphasized that the project reflects Norway’s ongoing commitment to supporting climate-smart and inclusive agricultural growth in Tanzania.
“This partnership reflects our shared ambition to make agriculture a driver of inclusive and sustainable growth,” he said. “By empowering women and youth and strengthening nutrition outcomes through soybean production, we are building resilient communities with lasting impact.”
Aligning with National and Global Goals
The Soybean Value Chain Support Project aligns with key national frameworks — including the Agriculture Sector Development Programme (ASDP), Agenda 10/30, and the Agriculture Master Plan 2050 — as well as global priorities under the UN Sustainable Development Goals (SDGs), particularly those addressing zero hunger, gender equality, and climate action.
Climate-smart innovations such as certified seed systems, soil-friendly mechanization, and digital platforms providing real-time market and weather data will form a critical part of the implementation strategy.
A Model for Africa’s Agricultural Transformation
Beyond soybeans, the Norway–PASS Trust partnership stands as a model for how finance, technology, and policy alignment can drive agricultural transformation across Africa. It underscores the power of collaboration between governments, the private sector, and development partners in unlocking value chains that benefit both farmers and the broader economy.
As the project moves toward its inception phase, optimism is high. For thousands of farmers in Ruvuma, this initiative represents more than a new planting season — it is the start of a new era where every seed sown tells a story of partnership, productivity, and prosperity.
📍 About PASS Trust
The Private Agricultural Sector Support (PASS) Trust is a non-profit organization that facilitates access to finance for smallholder farmers and agribusinesses across Tanzania. Through its credit guarantee scheme and business development services, PASS promotes innovation, inclusion, and growth in agricultural value chains.
🌍 About Norway’s Support to Agriculture in Tanzania
The Royal Norwegian Embassy works with the Government of Tanzania, development institutions, and the private sector to promote climate-smart, inclusive, and sustainable agriculture. Norway’s support emphasizes value chain development, digital inclusion, and gender empowerment — helping strengthen rural livelihoods and food security.
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