Access to finance remains one of the biggest barriers to agricultural transformation in Tanzania, particularly for farmers seeking modern machinery and equipment to improve productivity and expand their businesses.
Against this backdrop, Equity for Tanzania Limited (EFTA) is demonstrating how asset financing can support agricultural growth while encouraging responsible borrowing among farmers.
The company has refunded nearly TZS 100 million to 37 farmers who consistently met their loan repayment obligations, returning 50 percent of the interest paid on loans used to acquire agricultural machinery and productive equipment.
The initiative, known as the Interest Rebate Programme, rewarded 22 farmers with interest refunds worth TZS 53 million during the 2026 Nanenane Agricultural Exhibition in Arusha, following rebates of TZS 43 million distributed to 15 farmers in 2025.
According to EFTA, the rebate is not a subsidy but a performance-based incentive designed to encourage financial discipline and responsible borrowing.
The financed assets include tractors, power tillers, ploughs, trailers, sunflower processing machines and rice milling equipment, enabling farmers to increase productivity, reduce production costs and add value to agricultural produce.
More Than 300 Jobs Created
Beyond improving farm operations, investments made by the 37 beneficiaries have generated more than 300 jobs across the agricultural value chain.
The jobs include tractor operators, machine operators, mechanics, equipment technicians and seasonal workers involved in cultivation, harvesting and processing activities.
EFTA says access to mechanised farming equipment has enabled farmers to cultivate larger areas and improve efficiency throughout the production cycle, creating additional economic opportunities in rural communities.
The institution notes that the experience demonstrates how productive asset financing can contribute not only to increased agricultural output but also to employment creation and rural economic development.
Strong Repayment Culture Drives Portfolio Quality
EFTA attributes the programme's success to a strong repayment culture among its customers.
As of June 2026, the company recorded a Non-Performing Loan (NPL) ratio of one percent, a level that ranks among the strongest performances in Tanzania's financial sector.
The achievement is particularly significant given that EFTA specialises in financing movable productive assets such as tractors, vehicles, agricultural machinery and industrial equipment, which typically carry higher credit risks than loans secured by fixed property.
The company says timely loan repayment has strengthened its portfolio quality and enhanced its ability to extend financing to more farmers and entrepreneurs.
Rewarding Responsible Borrowers
Speaking during the event, EFTA Chief Executive Officer Nicomed Bohay said the programme reflects the company's long-term commitment to promoting financial responsibility.
“The Interest Rebate Programme is more than simply refunding part of the interest paid by our customers. It is an investment in building a culture of financial discipline. We want farmers to see that repaying loans on time creates tangible value for them,” he said.
Mr Bohay noted that customers' commitment to meeting their obligations has helped EFTA maintain one of the strongest loan portfolios in the sector.
“The financial discipline demonstrated by these farmers has enabled EFTA to achieve a Non-Performing Loan ratio of just one percent as of June 2026. Strong portfolio performance enables us to reach even more farmers with affordable financing solutions,” he added.
He said the financed machinery has enabled farmers to expand production, grow their enterprises and create employment opportunities within their communities.
Farmers Reinvesting in Growth
Beneficiaries of the programme say access to machinery has transformed their farming operations and improved business performance.
Mr Erimiti Mushi from Arusha said equipment financed through EFTA has increased efficiency on his farm while enabling him to provide mechanised farming services to neighbouring farmers.
He described the interest rebate as a practical incentive that rewards responsible customers and encourages continued financial discipline.
Another beneficiary, Sebastian Gwaltu from Katesh in Manyara Region, said mechanisation has improved operations from land preparation to harvesting and processing.
He noted that the refunded funds would be reinvested to expand his agricultural activities and further improve productivity.
Expanding Access to Productive Finance
According to EFTA, every customer who repays a loan on time contributes to expanding access to finance for others.
The institution says strong repayment performance allows it to recycle capital efficiently, finance additional productive assets and reach more farmers and entrepreneurs across the country.
Its participation in the 2026 Nanenane Agricultural Exhibition has also provided an opportunity to educate farmers about financing options that support mechanisation, value addition and agricultural business growth.
With nearly TZS 100 million returned to borrowers, an NPL ratio of just one percent, and more than 300 jobs supported, EFTA's Interest Rebate Programme highlights how financial discipline can create benefits for farmers, lenders and the wider economy while advancing Tanzania's agricultural transformation agenda.