TANZANIA - John Deer Financial and Microfinance Bank Plc. (NMB) have signed an agreement to assist farmers acquire farming machinery through affordable credit arrangements.
The deal’s innovative financial solution focuses on emerging commercial farmers and mechanized contractors. It offers them improved access to credit and addresses the cost of borrowing challenge.
The two entities said the solution that facilitates access to mechanization adoption is expected to aid farmers in achieving improved cultivation practice, higher yields, and ultimately increase household incomes.
John Deer’s Managing Director for Sub-Sahara Africa, Antois van der Westhuizen, said his company understands the importance of having a sustainable agriculture sector.
“Given the importance smallholder farmers in Africa, John deer aims to assist in creating a system whereby smallholder farmers can improve their efficiencies at all levels.”
According to him, most small-scale farmers do not have the requisite capital to invest in modern technologies and equipment.
He said through the deal with NMB, his company will support emerging commercial farmers and contractors by offering them with training which will include cash flow management, agronomic skills and equipment purchasing.
“Access to credit has in the past been a major stumbling block in allowing smallholder farmers and small scale contractors to employ on-farm technology.
The contractors model which John Deer has development in collaboration with NMB offers an innovative solution to this problem,” said the bank’s head of Corporate Banking, Filbert Mpozi.
He said currently NMB serves 600,000 smallholder farmers by financing their crop production.
“We are also targeting large commercial farmers and supporting their growth…we have over 40,000 micro enterprises and SMEs that we provide credit to … agriculture employs majority Tanzanians so its growth and development will have huge positive ramifications for the country.”
January 23, 16; http://www.ippmedia.com/frontend/index.php?l=88151