TANZANIA BORROWS US$11 MILLION TO SAVE BUMPER MAIZE HARVEST

BUMPER HARVEST: The government is now looking for buyers across the borders who maybe in need.

DAR ES SALAAM, Tanzania - The government is borrowing $11.93 million to buy some of the bumper maize harvest stuck with farmers writes LEONARD MAGOMBA.

The National Food Reserve Agency (NFRA) has been given go ahead to get loan amounting Tsh20 billion ($11.93 million) from CRDB bank to facilitate the deal.

This is a good news to Tanzanian farmers who have been crying for the unsold of their big chunk of maize. Tanzanian farmers are enjoying bumper maize harvests this season. 

“We have given the go ahead to NFRA to borrow at least Tsh20 billion ($11.93 million 29,800) from CRDB bank for buying the grains,” Minister for Agriculture, Eng Christopher Chiza said.    

The maize harvest this season is 500 million metric tons while the government through NFRA can only buy 300,000 metric tons. 

According to Minister for Agriculture Eng Christopher Chiza, Tanzania has self-food sufficiency of 125% this year.

As for Kenya buying maize and rice from Tanzania, he said Kenya also had good harvests but with time they might still need addition maize and rice. 

Minister Chiza said besides this loan, the government is working on ways to look for markets outside the country, including encouraging the private sector to buy the maize.

To start with, the government has already entered into contract with the World Food Programme (WFP) to buy at least 200,000 metric tons of maize.

“WFP will buy at least 200,000 metric tons of maize from NFRA and hence create space for the agency to buy more maize from the farmers,” he told East African Business Week.

Apart from the World Food Programme (WFP), the government is in discussions with the neighboring Kenya, Democratic Republic of Congo and South Sudan to buy the country’s excess maize and rice.

He said they have already sealed a deal with South Sudan to allow Tanzanian traders to sell maize and rice. “Already 1,000 metric tons have been sent partially as food relief and partially for sell.”

He also added that the Tanzania Embassy in the Democratic Republic of Congo is in discussions with the government in Kinshasa to allow Tanzanian traders to sell maize in DRC. Recently South Sudan also reported shortages.

East African Business Week