Deputy Prime Minister and Minister of Energy, Dr. Doto Biteko. Photo: Courtesy
Tanzania Government Injects Sh 108.43 Billion to Boost Agro-Processing Industries
By Adonis Byemelwa
The Tanzanian government, through the Tanzania Agricultural Development Bank (TADB), has recently disbursed loans amounting to Sh 108.43 billion to support the establishment and development of agro-processing industries.
This significant financial injection aims to enhance the value addition of agricultural and livestock products across the country.
Deputy Prime Minister and Minister of Energy, Dr. Doto Biteko, highlighted this effort on July 5, 2024, while inaugurating a Small and Medium Enterprises (SMEs) forum organized by the popular print and digital media company, Mwananchi Communications Limited in Dar es Salaam. Dr. Biteko stated that these loans were distributed up until March of this year.
“Out of the total funds, Sh 38 billion was allocated for investment purposes, while Sh 70.427 billion was provided for operational costs. This investment has guaranteed secure markets for farmers, livestock keepers, and fishermen in the country,” said Dr. Biteko.
In the fiscal year 2023/24, the government, through the National Entrepreneurship Development Fund (NEDF) implemented by the Small Industries Development Organization (SIDO), issued 956 loans valued at Sh 2.3 billion with an interest rate of 9%. Notably, 51% of these loans were granted to women, and 28% were directed towards rural projects. Dr. Biteko emphasized, “Empowering women and rural entrepreneurs is a cornerstone of our strategy to foster inclusive economic growth.”
In addition, the SANVN program (a collaboration between SIDO, Azania Bank, NSSF, VETA, and NEEC) provided loans ranging from Sh 8 million to Sh 50 million for small entrepreneurs and Sh 50 million to Sh 500 million for medium entrepreneurs.
During the 2023/2024 fiscal year, 11 loans worth Sh 1.3 billion were issued to SIDO beneficiaries through Azania Bank, creating 103 jobs. “These funds have not only facilitated business expansion but also generated vital employment opportunities,” Dr. Biteko noted.
Dr. Biteko affirmed the government’s commitment to continue collaborating with small and medium-sized entrepreneurs (SMEs) to enhance, grow, and sustain emerging businesses for the country’s economic development.
He added, “Our focus remains on creating a conducive environment for SMEs to thrive, which in turn drives our national economy forward.”
The forum is expected to open up various opportunities for SMEs to discuss ways to improve and develop their skills, ultimately fostering the growth of small and medium-sized enterprises in line with national development goals.
The loans are seen as a significant boost to the agricultural sector, providing much-needed capital for processing and value addition, which is crucial for increasing productivity and ensuring food security.
This initiative underscores the government’s dedication to transforming the agricultural landscape and uplifting the livelihoods of those engaged in farming, livestock keeping, and fishing. The concerted efforts aim to create a robust and dynamic economy driven by thriving SMEs.
“These strategic investments highlight our unwavering commitment to the agricultural sector, which is the backbone of our economy. We are determined to build a prosperous future for all Tanzanians,” Dr. Biteko concluded.
