TADB, Clinton Development Initiative partner to unlock soybean value-chain in Tanzania

TANZANIA – Tanzania Agricultural Development Bank (TADB), has entered into a strategic partnership with the Clinton Development Initiative (CDI), an initiative of the Clinton Foundation, that will allow the agri-bank to disburse up to TZS1.15 billion (US$500,000) to unlock the soybean value-chain in Iringa Region, Tanzania.

According to the Memorandum of Understanding (MoU) signed between the two parties, the partnership aims at enhancing financial accessibility to 29 Agriculture Marketing Cooperatives (AMCOs), which will impact 2,900 CDI supported farmers engaged in the production and marketing of soybeans, for a period of three years.

Japhet Justine, TADB’s Managing Director said, ”TADB is excited about this partnership, as it is the first intervention our bank is partaking in the soybeans value-chain. There is an increasing demand for soya as a fortifier in human foods and there is an active cadre of small-to-medium-scale entrepreneurial processors, mostly women, servicing this requirement. Similarly, there is a growing demand for soya as an ingredient in animal feeds, especially for poultry.”

“This MoU has therefore set a loan facility that will be used to help farmer leaders, village community banks (VICOBA), and AMCOs members to have access to basic seeds to multiply into Quality Declared Seed (QDS) and certified seeds for producing soybean grains. The AMCOs will also get aggregation loans for them to have the capacity of undertaking early purchase of soybeans and post-harvest handling linkage to markets,” he added.

“The investment will help soybean small-scale producers put more money into their pockets, as CDI’s cooperatives are better positioned to serve their members”

Monsiapile Kajimbwa – Tanzania Country Director at DCI

On his part, Monsiapile Kajimbwa, Tanzania Country Director at CDI said, ”Under the partnership, CDI has committed to contributing resources to put towards financial training and agribusiness development support as a catalytic investment to TADB, whereby TADB will disburse the respective US$500,000 (TZS 1.15 billion,) in different phases during the partnership period.”

He further added that: “The investment will help soybean small-scale producers put more money into their pockets, as CDI’s cooperatives are better positioned to serve their members. For several years, we have seen success with input and output loans through our cooperatives. It is now timely to scale up the model in the region.”

In season 2019-2021, CDI successfully operationalized the input loan with 56 VICOBA members, an output loan arrangement with three AMCOS in Iringa, and mobilized 106 farmer leaders to become certified and produce quality declared seeds (QDS) for other farmers in their communities.

CDI is actively working with nearly 80,000 smallholder farmers across Tanzania, Malawi and Rwanda, and is made possible through support by the Nationale Postcode Loterij.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.