National Microfinance Bank, Partners to Provide Loans to Farmers

Three firms have signed an agreement to deliver innovative finance solutions to emerging commercial farmers. The firms — John Deere Financial in collaboration with National Microfinance Bank, and John Deere dealer, LonAgro — also would work on improving accessing credit and address the cost of credit.

Under the deal, the financiers would provide finance solutions for famers that facilitate access to mechanization adoption gearing to improve cultivation practice, higher yield and increase incomes.

John Deere Financial Sub-Sahara Africa, Managing Director, Antois van der Westhuizen said the firm understands the importance of food security and having a sustainable agricultural sector.

“Given the importance of the small farmer in Africa, John Deere aims to assists in creating a system whereby farmers can improve their efficiencies at all levels,” van der Westhuizen said.

The targeted efficiencies are in the areas of input procurement, production through access to new technology — seeds, fertilizer and mechanization and marketing agricommodities.

Through the agreement John Deere will support emerging commercial farmers and emerging contractors by offering operator training, business training — include cash flow management — and agronomic skills to equipment purchasers. Speaking at the soft signing ceremony, NMB Head of Corporate Banking, Filbert Mponzi, said the bank recognized the important role the agri-sector plays and has taken a deliberate effort to develop the sector.

“Access to credit has, in the past, been a major stumbling block in allowing smallholder farmers and smallscale contractors to employ on-farm technology,” he said.

The two — NMB and John Deere — has come up with a contractor model that offers an innovative solutions to the problem. LonAgro, as the registered John Deere dealers in the country, believes that mechanized solutions are the only way to meet the world demand for food.

“Through NMB and John Deere’s collaboration we can ensure that emerging commercial farmers and part- time contractors do not only have access to new technology, but also the back up and support from LonAgro to make it work sustainably.

Originally Published on DailyNews Tanzania