Tanzania: TIB needs 150bn/- to provide loans to farmers

THE Tanzania Investment Bank (TIB) needs about 150bn/- to enable it provide loans to farmers in the country, the Deputy Minister for Finance and Economic Affairs, Mr Jeremiah Sumari told the National Assembly here.

He was responding to a supplementary question from Dr Raphael Chegeni (Busega-CCM) who wanted to know whether the monies from EPA promised by the government had been submitted to TIB to be used in issuing loans to farmers. Mr Sumary said TIB needed big capital in order to be able to discharge its responsibilities competently.

He said, however, the government has given 53bn/- to TIB as a starting capital and the 3bn/- was allocated to the loans window. He explained that the government has already issued 1bn/- out of the 3bn/- from EPA funds to beef up TIB capital.

Meanwhile, the government has given some 35.5bn/- additional funds to TIB to enable it provide loans to farmers pending the establishment of Farmers Bank in the near future.

Mr Sumari told the National Assembly that TIB has also been given in 2008/2009 financial year some 1bn/- out of the 3bn/- from EPA funds to help in improving agriculture in the country. He said this in response to a question by Mossy Suleiman Mussa (Mfenesini-CCM) who wanted to know government plans to increase TIB capital from 3bn/- allocated in 2008/2009 this financial year.

The legislator noted that the government decided to provide loans to farmers through TIB. In a supplementary question the legislator noted that the Chinese government had promised to assist Tanzania in improving the agricultural sector by providing expertise and capital to start Farmers Bank.

She wanted to know government efforts in realizing the promise by the Chinese government. The Deputy Minister told the House that discussions with the Chinese government were in progress and plans to start Farmers Bank were in final stages.

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