Stanbic Bank Tanzania and Agricom Africa (AA), an agricultural solutions provider in Tanzania, have signed a Memorandum of Understanding (MoU) to drive the modernisation and growth of Tanzania’s agriculture sector through asset financing and access to agri-technology.

According to the statement released yesterday per the MoU customers will have the opportunity to benefit from Agricom Africa’s value add technologies, while Stanbic Bank will extend up to 80 percent financing, payable over some of the longest terms (up to 60 months) in the market.

Speaking from the Nane Nane Grounds in Mbeya city, Stanbic Head of Vehicle and Asset Financing John Mosha emphasised the transformative impact of the partnership, stating that the collaboration will empower farmers with vehicle and asset financing facilities, including loans for agri-technology and equipment purchases, farm equipment leases among other options, making them not only more financially liquid and productive but also farm-smart.

“By ensuring access to modernised tools of production, farmers can automate their farm activities, unlock their agribusiness potential, and scale up their operations, ultimately contributing to Tanzania’s agricultural tradeability,” he said.

Stanbic Head of Business and Commercial Banking Fredrick Max highlighted that the bank have been doing asset financing and supporting other sectors for a long time, and are now have a strategy to increase footprint in the agricultural sector.

“Our financing solutions are meticulously structured to address the production, processing, and logistics needs of agribusinesses. We firmly believe that modernisation and automation will enable Tanzania’s agriculture sector to achieve the envisioned 10 percent annual growth, driving the nation’s socio-economic development,” he said.

Agricom’s Group Chief Executive Officer, Alex Duffar, emphasised that the MoU would provide farmers with enhanced access to reliable and innovative agri-equipment, offering a coordinated quick turnaround time on loan applications, ensuring that farmers can swiftly benefit from quality equipment on their farms.

“Agriculture plays a pivotal role in our nation’s growth. By accelerating mechanization in the sector, we can pave the way for a tradeable economy, considering its significant contribution of 65 percent to our Gross domestic product,” he said.

Mr Duffar said, “Mechanization serves as a key driver for agri-led industrial development and lays the foundation for sustainable food systems, fostering long-term food security in Southern and Eastern Africa”.

Gracing the signing ceremony Regional Commissioner of Mbeya, Mr Juma Homera, stated that the southern highlands regions lead in agriculture in Tanzania.

Therefore, this agreement will add value to the agricultural sector and help farmers move away from traditional farming methods to modern machinery in production.

“For agriculture to succeed in the present time, it requires modern machinery. This agreement, empowering farmers with agricultural tools between Stanbic Bank, present across Africa, and AgriCom, the leaders in agricultural tools and technology, will facilitate agribusiness and support the government’s goal to increase agricultural by 10 percent by the year 2030,” said Mr Homera.