Access to financing from the Tanzania Agricultural Development Bank (TADB) has helped a rice processor in Igunga move beyond small-scale operations, with higher production capacity, more jobs and a wider market footprint.
Mboje Food Processor Company Limited has used the financing to invest in rice-processing and grading machinery, transport and working capital. The investments have increased the company’s ability to process up to 60 tonnes of paddy a day.
Company director Joseph Mboja said access to finance had addressed some of the key constraints facing agricultural processors, particularly the ability to invest in equipment and secure enough raw materials to meet market demand.
“The financing has enabled us to buy and install rice-processing and grading machines, purchase a vehicle and obtain working capital to buy raw materials,” Mr Mboja said.
The investment has also translated into employment. The company now has 23 permanent workers, up from 13 before the financing, while about 150 seasonal workers are employed during peak periods.
Mr Mboje said the increase in processing capacity had created room for the company to expand its operations and serve a larger customer base.
“Our processing capacity has increased to 60 tonnes per day, and we have also expanded our markets both within and outside the country,” he said.
The figures point to a broader effect of agricultural financing beyond the businesses receiving loans. Higher processing capacity creates additional demand for agricultural raw materials, while investment in machinery can increase the amount of value retained locally before products reach consumers.
For farmers in and around Tabora, the expansion of processors can provide a more consistent outlet for paddy, particularly when processors have the working capital required to purchase larger quantities during the harvest season.
Transport has been another important part of the expansion. The company’s purchase of a vehicle has improved its ability to move raw materials and finished products, helping reduce delays between production and markets.
Mr Mboja said the financing had therefore supported the business at several stages of its value chain rather than simply increasing its production equipment.
Mboja Food Processor is also diversifying beyond rice. The company processes sunflower cooking oil and trades in other agricultural products, giving it additional sources of revenue while increasing the range of crops that can be processed locally.
The company’s experience was highlighted during a TADB customer visit held as part of Customer Service Week.
Its expansion illustrates the role that agricultural finance can play in turning rural enterprises into larger commercial operations. The key test, however, will be whether increased capacity can be sustained through reliable supplies of raw materials, growing markets and continued investment.
For Mboja Food Processor, the immediate results are visible in the numbers: permanent employment has risen from 13 to 23, seasonal employment has reached about 150 workers, and processing capacity has reached 60 tonnes a day.
The next opportunity is to convert that capacity into sustained growth across domestic and international markets, while creating stronger links between farmers, processors and consumers.
