Since its inception in 2017, Feed the Future Tanzania Mboga na Matunda (FTFT-MnM) has worked with local nongovernmental organizations, the private sector, local government authorities, and civil society organizations to provide goods and services to farmers, including access to critical financial services.
This year, FTFT-MnM facilitated a training with partners Yara, Syngenta, and Monsanto for 20 agro-dealers in Ilula, a town in the Iringa region known for its production of tomato, sweet pepper, onion, and watermelon, to build capacity and identify new business opportunities, particularly around access to finance.
FTFT-MnM specialists and partners explained the benefits of new finance tools, including cost production and cash flow tools; crop selection tools, based on budget and return on investment; and market trends tools. These were designed to help financial institutions develop suitable products around crop budget and market information.
FTFT-MnM linked smallholders with financial institutions through several trainings, including one in April to help farmers understand the profitability of the horticulture industry and the basics of loan repayments. Along with the sessions, FTFT-MnM works with financial institutions through reaching out to farmer groups and other horticultural businesses to raise awareness on the importance of accessing loans.
To date, 31 beneficiaries have received $11,000 in loans from the MUCOBA Bank, and the Mafinga and Makuyuni Juhudi Savings and Credit Cooperative Societies to help smallholders handle productions costs as well as facilitate additional horticultural agribusinesses along the value chain.
See more of our agricultural finance series here.
Credits:
Fintrac Inc.