TADB, BoT Academy Concludes training for 52 experts from Financial Institutions on best lending practices in Agri-Sector

Tanzania Agricultural Development Bank (TADB) through the Smallholder Credit Guarantee Scheme (SCGS) in collaboration with the Bank of Tanzania Academy (BoT Academy) has designed and funded a distinctive training program with the goal of enhancing the competencies of banking professionals engaged in agricultural value chain financing.

This, in turn, will enable the banking professionals to better support farmers, Cooperatives, and other stakeholders in the agricultural, livestock and fisheries value chain. Furthermore, the program aims to nurture future trainers within the banking sector.

This first cohort programme was conducted by the experts from BoT Academy, Sokoine University of Agriculture (SUA) and Saint Augustine University (SAUT) from 22nd April to 3rd May 2024 where graduates were awarded certificates of competence (Certified Professional In Agricultural Finance – CPAF) from the BoT Academy.

Speaking during the award ceremony, Acting Managing Director of TADB, Dr. Kaanaeli Nnko, Ph.D. said that the tailor-made training program is an important step towards fortifying the technical capabilities of our Partner Financial Institutions. Ultimately, this initiative will scale up provision of agricultural financing solutions to the agriculture sector.

Dr. Nnko said that despite the significant contribution of the agriculture sector to the Country’s GDP (26%), employment (65%) and raw material for industrial production (65%), the allocation of credit to the sector, according to the Bank of Tanzania March 2024 report, reflects 10.8%, which is remains below the target of 30% by 2030 as per the Financial Sector Development Master Plan.  Whilst it is noted that 2030 is 6 years away, there is room for improvement

Among of the noted challenges for low credit flow are; inherent risk associated with the sector, lack of sufficient technical skills on product design, transaction structuring, risk management for agricultural financing and inadequate access of medium-long term concessional funding/liquidity for Agri-financing.

“This is a big step for us. Today, for the first time in the country 52 participants from 16 banks and financial institutions are awarded a Certified Professional in Agricultural Finance (CPAF); We believe this step will not only boost access to finance in agri-sector but also strengthen the capacity to catalyse agricultural transformation to commercial agriculture” said Dr. Nnko.

Improved access to finance plays a significant role in the transformation of the agriculture sector. Farmers and agribusinesses need financial and non-financial services to become more resilient and sustainable. On the contrary, banks and financial institutions need skilled employees who understand the financial needs and dynamics of the agricultural value chains.

He congratulates and called upon all training graduates to make use of the acquired knowledge and expertise in designing innovative financing solutions and improve/scale up lending proposition to the agricultural sectors especially SHFS, Rural Micro-enterprises and Agri-MSEs who often lack access to appropriate financing solutions.

Tanzania Agricultural Development Bank (TADB) is a state-owned Development Finance Institution, with the mandate to catalyse agricultural transformation in Tanzania. One of TADB’s primary responsibilities is to facilitate agricultural financing and to lead in formulating strategies and initiatives that strengthen both the institutional and technical capabilities of TADB and its Partner Financial Institutions.