TADB, BoT launch agriculture financing training

Dar es Salaam. The Tanzania Agricultural Development Bank (TADB) has launched a training programme focusing on providing individuals with competencies required to improve agriculture through agricultural finance.

The programme, to be jointly implemented with the Bank of Tanzania (BoT) Academy, is meant to produce competent professionals and improve financing linkages among agri-value chain actors, financing institutions and other stakeholders.

TADB managing director Frank Nyabundege said during the launch in Dar es Salaam on Monday that the philosophy behind the programme was to produce innovative, creative and positive-minded professionals in agricultural finance.

He noted that the programme would enhance and augment the technical capacity of banking professionals to understand and assess the opportunities and risks for lending to the agriculture sector with a view to supporting growth of credit to smallholder farmers and SMEs specialising in agriculture.

“The training programme is an important step towards fortifying the technical capabilities of our partner banks. Ultimately, this initiative will contribute to the increased provision of financing solutions to the agriculture sector,” Mr Nyabundege said.

For her part, BoT deputy governor for financial stability and deepening Sauda Msemo said banks and financial institutions were critical partners in the Smallholder Farmers Credit Guarantee Scheme operated by TADB, adding that they played a key role in providing financial products and services to support growth of the agriculture sector.

“However, lack of sufficient technical skills to support product design, transaction structuring and portfolio risk management for agri-finance can act as a barrier to increased financing interventions in the agriculture sector. The capacity building of banking professionals to structure, screen, appraise and manage agri-finance transactions, as well as building an understanding of technical, financial, commercial, policy and regulatory aspects of the agriculture sector have been identified as key areas for intervention,” she said.

Facilitators of the programme, including the BoT Academy in collaboration with experts from Sokoine University of Agriculture (SUA) and St Augustine University of Tanzania (SAUT), have conducted a comprehensive review and assessment of needs.

Participants from 20 banks and financial institutions are expected to embark on a one-week fast-track pilot training programme. Subsequently, a review will be conducted and necessary improvements will be implemented based on feedback received from the participants and other stakeholders.

After the pilot phase, a fully-fledged certification programme, known as The Certified Professional in Agricultural Finance (CPAF), will be initiated. This will be followed by a "training of trainers (ToT)” programme.