Deputy
Prime Minister and Minister of Energy, Dr. Doto Biteko. Photo: Courtesy
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.