Established in 2000 through a collaboration between the governments of Tanzania and Denmark, PASS was founded with a vision to make agriculture bankable
Dar es Salaam. Tanzanian smallholder farmers, cooperatives and medium-scale agribusinesses have benefited from Sh2.3 trillion in agricultural lending over the past 25 years, thanks to interventions that have bridged the gap between farmers and financial institutions.
The financing was made possible through partnerships between the Private Agricultural Sector Support (PASS) Trust and commercial banks across the country.
Established in 2000 through a collaboration between the governments of Tanzania and Denmark, PASS was founded with a vision to make agriculture bankable.
At a time when most financial institutions viewed the sector as too risky and unpredictable, the Trust saw potential in millions of smallholder farmers, women and youth waiting to be integrated into the formal economy.
Through its credit guarantee scheme, the organisation has disbursed over Sh866 billion in guarantees, helping to de-risk agricultural lending and shift perceptions of farming from an uncertain livelihood to a credible, investable enterprise that drives real economic growth.
PASS Trust managing director Yohane Kaduma said the milestones reflect a national shift in how agriculture is valued.
“Banking agriculture was once seen as impossible,” he said. “But with the right support systems, farmers can access commercial credit, adopt modern technologies and participate meaningfully in value chains.
The true measure of success isn’t just in the figures but in the livelihoods transformed and the resilience built within our communities.”
He noted that over 4.7 million Tanzanians have benefited directly from PASS-supported programmes, with women accounting for almost half of them.
Agriculture remains the backbone of Tanzania’s economy, contributing about 26 percent to GDP and employing more than two-thirds of the working population.
Beneficiaries have recorded growth in key value chains such as rice in Mbeya, sunflower in Singida, coffee in Kilimanjaro and horticulture in Arusha.
Farmers are not only producing more, but also producing better—adopting technology, engaging in contract farming and supplying processing industries that feed into Tanzania’s industrialisation agenda.
Mainstreaming green growth has also become a key focus as Tanzania faces the realities of climate change.
The Trust has enabled more than Sh206 billion in green loans and provided Sh54 billion in guarantees for projects in renewable energy, water conservation, regenerative agriculture and eco-friendly mechanisation.
These investments have reached over 650,000 beneficiaries and created more than 28,000 green jobs.
Looking ahead, the trust plans to expand its impact investment fund, strengthen its leasing arm and integrate digital lending platforms to reach smallholders faster and more efficiently.
