Tanzania Agricultural Development Bank (TADB) and National Development Corporation (NDC) signed a Memorandum of Understanding of cooperation in resource mobilization, lending, distribution, and servicing of tractors and farm implements to farmers in Tanzania.
Speaking on the objective of cooperation, the acting managing director of TADB, Mr. Augustino Matutu Chacha said that the signed MOU will facilitate establishment of country-wide demand for tractors and farm implements as well as to facilitate mobilization of sustainable financial resources for provision of loans, procurement, distribution and servicing of tractors and farm implements to farmers in Tanzania and to facilitate the application of sound lending principles in the provision of loans for purchase of tractors and farm implements, including loan monitoring and evaluation.
Other benefits will include facilitating establishment of more efficient means of procurement, distribution, and delivery of tractors and farm implements; and providing a framework for establishing effective and continuing collaboration between the Bank and the Corporation.
“This MoU between the Bank and the Corporation will draw mutual benefits from cooperation between the two organizations in resource mobilization, lending, distribution and servicing of tractors and farm implements to farmers in Tanzania,” he said.
Mr. Chacha added that the Bank and the Corporation are desirous to establish cooperation in resource mobilization, lending, distribution and servicing of tractors and farm implements to farmers.
Adding that based on the mandate of the Bank, TADB is ready to facilitate increased access to finance through provision of short, medium and long-term credit facilities at affordable rates and terms across agricultural value chains of focus, including provision of loans for purchase of tractors and farm implements.
According to the signed document TADB will be mandated among others to manage financial resources for financing procurement of tractors and implements through extension of loans to farmers in Tanzania and design innovative financing products and services with favorable conditions for financing agricultural mechanization by farmers in Tanzania.
Other activities include conduct credit appraisal of identified agricultural projects earmarked for tractor and farm implement loans as well as managing the overall lending activities related to financing purchase of tractors and farm implements by farmers including loan monitoring and evaluation; and provide trade finance services to the Corporation as it relates to procurement of tractors and farm implements from source manufacturers.
On his part, NDC’s Boss, Eng. Ramson Mwilangali said one of the major focuses of the Corporation includes promotion of agricultural mechanization in Tanzania; hence the signed cooperation will assist in improving agriculture production for both domestic consumption in Tanzania.
He added that through the proposed cooperation NDC and TADB will facilitate the industrial feedstock through establishment of Tractor Assembly Plant at Kibaha for assembling semi knocked down (SKD) and completely knocked down (CKD) tractors along with farm implements for selling to individuals/groups of farmers.
“This collaboration between the Bank and the Corporation among others may entail any of the subject matters covered by their mandates,” he said.
He mentioned specific areas of collaboration that will include, but will not be limited to establishing country-wide demand for tractors and farm implements and costs thereof, formulating resources mobilization strategies for financing procurement Semi Knocked Down (SKD) and Completely Knocked Down (CKD) tractors for assembly alongside associated implements, provision of loans, distribution and servicing of agricultural inputs to farmers for the second phase II of the NDC Tractor Assembly Project as well as designing innovative financing products and services for loan financing and adoption of appropriate technologies by farmers in the country.
Others according to Eng. Mwilangali will include identifying and appraising loan applications for tractors and farm implements by farmers; and conducting needs assessment, preparing and implementing capacity-building programs related to the application of modern technologies in agriculture in Tanzania.
In order to facilitate implementation of the signed MoU, NDC is required to ensure timely procurement of Semi Knocked Down (SKD) and Completely Knocked Down (CKD) tractors and farm implements from abroad for assembly in Tanzania, ensure availability of tractors ready for sale to farmers at Tractor Assembly Plant in Kibaha and other designated sales centres and ensure timely delivery of tractors to farmers for which the payment and release order have been received.
Other responsibilities include providing after sale technical service of tractors and farm implements lent to farmers at the designated service centers countrywide as well as ensure adequate stocks of tractor spares are available at the designated service centers at all times; and providing and manage two years warranty for the sold tractors.
TADB and NDC are public owned institutions that aim at facilitate development in the country where the former is mandated to promote and support transformation of agriculture from subsistence to commercial undertaking to effectively and sustainable contribute to economic growth and poverty reduction while the latter is bestowed with a broad mandate as a development and promotion institution to stimulate industrialization in partnership with private sector.
Acting Managing Director of TADB, Mr. Augustino Matutu Chacha (left) speaks on the role of the Bank in implementing Government’s Industrialization Strategy during MoU signing in ceremony between TADB and NDC held at TADB’s Headquarter in Dar es Salaam. Centre is NDC’s Managing Director, Eng. Ramson Mwilangali who is flanked by NDC’s Director of Heavy Industry, Mr. Abdalllah Mandwanga.
NDC’s Managing Director, Eng. Ramson Mwilangali (right) stresses on position of NDC in supporting Government’s Industrialization Strategy during MoU signing in ceremony between TADB and NDC held at TADB’s Headquarter in Dar es Salaam. Centre is TADB’s Acting Managing Director, Mr. Augustino Matutu Chacha and left is TADB’s Head of Legal Service, Ms. Neema Christina John.
Acting Managing Director of TADB, Mr. Augustino Matutu Chacha (left) together with NDC’s Managing Director, Eng. Ramson Mwilangali (right) sign MoU that aims at Design resource mobilization strategies for procurement of tractors and farm implements and provision of loans to farmers in Tanzania. The signing in ceremony held at TADB’s Headquarter in Dar es Salaam.
Acting Managing Director of TADB, Mr. Augustino Matutu Chacha (left) and his NDC’s counterpart, Eng. Ramson Mwilangali (right) display signed MoU that aims at Design resource mobilization strategies for procurement of tractors and farm implements and provision of loans to farmers in Tanzania.
TADB’s management together with NDC’s counterpart in the Memoir Group Photo after signing the MoU that aims at Design resource mobilization strategies for procurement of tractors and farm implements and provision of loans to farmers in Tanzania.
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