Why TADB’s Matrekta loan matters to farmers

Gone are the days where without your dedicated ener­gy, time and use of traditional farming methods, you were no near to be regarded as a farmer.

In retrospect, agriculture connoted nothing more than a manual labour for uneducat­ed, no-hopers and destitute.

With traditional farming methods seemed to consume much of their time and energy, they were left with no other choices that would perhaps enable them to engage in alternative economic activi­ties. That being the case, these farmers are still on the bread­line than anyone could have ever imagined.

The Tanzania Agricultural Development Bank (TADB), has brought about an approach that has proven to mitigate the challenge and facilitate mod­ernisation into the agriculture practice in the country.

The ‘Matrekta Loan’ TADB product has been designed to enhance the accessibility and affordability of modern mech­anised tools to farmers. The product comes with a subsi­dized rate from partners com­panies supplying the mechan­ics to farmers.

“The Matrekta loan has been designed to enable farm­ers to get different mechanisa­tion tools like cotton pickers and combine harvesters. Other tractor accessory equipment available in this loan include; ripper, disc plow, precision planter and boom sprayer”, said Afia Sigge, Acting Direc­tor for Credit and Business at TADB.

“This loan is unique in its very own way since it involves our partners Lon Agro and Agricom who subsidize the product. It thus means that while our interest rates would have ranged between 15-12 per cent, this special loan’s interest will range between 14-8 per­cent,” added Afia.

While the interest rates comes at competitive rates, TADB aims the loan to bene­fit more smallholder farmers, AMCOs, SMEs, commercial farmers, Agri-companies, gov­ernment employees, women and youths.

“As a development bank, we aim at empowering more women and youths with this special designed product. TADB understands that wom­en play a fundamental role in agriculture. We want to con­tribute to fostering gender equality, ending poverty, zero hunger, and reducing inequal­ities, decent work, and eco­nomic growth in the country. This is why women and youth will have a special single digit interest rate at only 9 percent. This special interest rate will affluence women and youth’s agricultural prosperity. The 9 percent interest rate will also be accessed by government employees,” elaborated Japhet Justine, Managing Director at TADB.

Furthermore, the bank boasts its exalted services to farmers after having already disbursed about TZS 4.686 billion since the official appli­cation of the product early this year. The number of ben­eficiaries by May 2021 is at a record of 5,812. The number comes as the finances impact SMEs, AMCOs, and commer­cial farmers.

Through the product, TADB has been able to create what it refers to as ‘mechanisation centers’.

Mwanavala farmers’ mechani­sation center, Mbeya

In an effort to continue ena­bling farmers by TADB, we saw the Minister for Agriculture, Prof Adolf Mkenda handing over 15 combine harvesters, a loan worth Sh950 Million to Mbarali’s farmers of Ngu­vu Kazi Mwanavala AMCOS. Such facility loan will help boost productivity and bene­fit more than 5,000 farmers in the district and nearby areas. The event took place on June 20th, 2021.

“These combine imple­ments reflect on TADB’s con­tribution in the agriculture sector which is even much aimed at improving symmet­rical growth of the sector,” attests Prof Mkenda.

Prof Mkenda went further to heap praise on Mbarali’s smallholders for putting in productive work – for they have successfully reaped five tons per hectare from previ­ous two tons. “I challenge you to make it to eight tons,” he added.

TADB’s Managing Director, Japhet Justine hinted that the endeavor is done under part­nership of LonAgro and Agri­com Africa with an accord of disbursing affordable loans of not more than 10 percent.

He says the bank has, as of recent, disbursed a total of Sh12 billion for the purchase of 199 agricultural mechanisa­tion since 2017. Among other implements are; 90 tractors and 19 combine harvesters, the rest are planters, ploughs for regions of Katavi, Manyara, Pwani, Kagera, Mwanza, Irin­ga, Rukwa, Songwe, Njombe, Tanga and Zanzibar.

Unfolding TADB’s invest­ment blueprint in that zone, Justine said, “Up to June 8th, 2021, TADB had already dis­bursed agricultural loans worth Sh32.4 billion, of which have benefitted 14,508 across all Southern Highlands regions.”

Speaking for the first time, after his appointment to be the chairperson of TADB’s board of directors, Ishmael Kasekwa has thanked Her Excellency, the President of the United Republic of Tanzania, Samia Suluhu Hassan and pledged to work closely with the Ministry of Agriculture and other key players in the financial trans­formation of the agriculture sector.

“We are enjoying the mod­ern tools of harvesting. With the modern tools, we are man­aging post-harvest loss. Farm­ers were losing paddy worth TZS 200 thousands per acre. Also, we are harvesting on time with the combine harvester unlike with traditional meth­ods which plummeted the quality of paddy. We are enjoy­ing farming now than ever,” explained Hamza Tamim, the Nguvu Kazi Mwanavala AMCOS chairperson.

Narakauo mechanisation cen­ter, Manyara

A typical nomadic society at Narakauo Ward in Simanjiro District has been a ground­breaking mechanisation center for TADB’s Matrekta Loan. The hamlet residents are Maasai societies predom­inantly pastoralists who are turning into commercialised agriculture. The 19 farmers received 18 tractors and a planter for maize and beans farming. While the farmers were facilitated with these mechanisation facilities, they were also financed to access farm inputs seeds for maize, yellow beans and fertilizers. This enabled the financing value amounting to TZS 862 million. Further to this unique mechanisation center, is the allocation of an extension officer based in Narakauo. The extension officer’s role with these products, it all has been about enhancing efficiency and creating reliable farm­ing services, which reduced drudgery, improved the timeli­ness of agricultural production operations, increased the effi­ciency of input use, and facil­itated the implementation of the sustainable intensification of production systems.

CHAURU mechanization cen­ter, Chalinze

The ‘Chama cha Wakulima wa Umwagiliaji Ruvu’ (CHAU­RU) is yet another TADB mechanization center that has received two tractors and two combine harvesters worth TZS 270 million. The AMCOs with 894 members among 326 are women, benefited from the TADB’s Matrekta Loan. The finances is geared at enabling the mechanisation of the 720 hectares of paddy farming out of 3,209 hectares owned by the AMCOs with tractors, combine harvesters, planters and farming inputs like seeds and fertilizers.

“We are happy to have received a mechanization loan from TADB. We have been able to prepare our farms and har­vest timely. During this har­vesting season, we have been able to increase our yields with extra ten bags of paddy to make 35 bags per acre unlike in the past where we could harvested a just 20 bags per acre,” noted Victoria Olotu, Farm Manager at CHAURU.

Looking at the ASDP II core objectives of transforming the agricultural sector (crops, livestock & fisheries) towards higher productivity, commer­cialisation level and increase smallholder farmer income for improved livelihood and guarantee food and nutrition security, you will bow to this TADB’s impactful endeavour. For business and customer inquiries, call us Toll free: 0800 110 120 or contact us via +255 22 292 923 501 and [email protected]