A recent victory of the Private Agricultural Sector Support Trust (PASS) in this year's agriculture festival famously known as Nanenane speaks volume.
In Dodoma, PASS clinched number 2 in the NGO category while it emerged number 1 in Morogoro in the Financial Services category. It took number 2 in Mbeya zone in the Agricultural Service provider category.
Like many other victories we know, PASS worked hard to earn it. In other words, the trophies did not come from heaven. It was a result of the vigour and determination of the NGO to deliver for the benefit of agriculture sector and the country at large. Undoubtedly, this should have made the sector's stakeholders proud.
"The victory will serve as a catalyst to serve more farmers in the country," PASS Managing Director, Mr Iddy Lujina says adding that they have vowed to reach as many people as possible in the country as a way to boost agriculture sector and fight poverty. "We are striving to reach more farmers at the end of this year by opening up more branches in various regions in the country," he says.
He explains that they are working hard in line with the government's agriculture first or Kilimo Kwanza initiative and the Southern Agriculture Growth Corridor of Tanzania (SAGCOT) because they believe that agriculture has the ability to spearhead the nation's development.
On his part, one of the PASS beneficiaries, Mr Papian Emmanuel, thanked the NGO for what they do to serve agriculture sector. "I call upon other institutions in the country to follow PASS footprints by serving farmers in the country and help them out of poverty," Mr Papian said during the exhibition.
As a way to strengthen the sector in the country, the MD challenges banking institutions to venture in supporting agriculture.
"Banks should come out and work with organizations such as ours," he says. He notes that young people in Tanzania should not shy away from agriculture sector; instead they should form groups, work hard and seek financial assistance from banks through organizations like PASS.
Giving an example, he says PASS has recorded tremendous achievements in Kilombero sugar plantations where it has helped youths who have formed groups and access loans from banks with the assistance from the NGO. PASS collaborates with seven banks but plans are to partner with more banks.
"I appeal to other banks to come out and work with PASS to stimulate investments and growth of private commercial farming and agribusiness," he says. Talking on some of the products on which PASS can collaborate with banks, Mr Lujina says under the lender's Option Guarantee, the lender will decide whether or not to guarantee loans to their borrowers based on predetermined guarantee criteria and a guarantee product policy contractually agreed with PASS.
According to the MD, the linkage banking guarantee product will guarantee loans from highly liquid institutions including large banks and pension funds to prequalified rural financial institutions to be used only for loanable funds supporting those institutions' agribusiness portfolios.
"Fixed equity hire purchase product is a meaningful departure from PASS's traditional way of doing business but maintains our vision and mission. It is a method for us to take an equity stake in a medium to large scale agribusiness by providing that business access to critical fixed assets without obligating that business to a commercial lender," he says.
He challenges farmers to strive adding value to their agricultural produce and take advantage of thriving ready markets in neighbouring countries. Mr Lujina says that Tanzania is blessed with huge arable land and if farmers will use it properly and adds value to their produce before selling them they could contribute to fighting poverty and development of the country at large.
"Neighbouring countries depend on us for food," he says, adding that this is an opportunity to tape and that people should not sell raw products but processed products for more profits. He explains that PASS is ready to help farmers acquire necessary equipments to process their agricultural produce so as to develop themselves and the country's crucial sector.
"We appeal to more people to visit our offices and know how they can benefit," he says. The Managing Director explains that PASS's intervention has in recent years helped in increasing bank's confidence to farmers and helped the latter access loans ranging from 10 million up to 200 million depending on the project targeted.
So far, PASS offers business development services; strengthen farmers' organizations and financial services. According to Mr Lujina, PASS's clients comprise groups of small farmers, individual farmers, agro-processors and others in the sector whose number has reached around 45,000 so far. "We have facilitated loans of approximately Tshs 95 billion," he says.
PASS supports agri-business enterprises and farmer groups; SACCOS cooperatives, farmers associations and women groups involved in agricultural activities. In 2011 alone over 11,000 farmers all over Tanzania got loans worth Tshs 21.5 billion for inputs, irrigation, tractors, agro- processing and trucks.
"Impressive productivity gains have been achieved in supported projects in various sub-sectors," he says. He mentions the sectors as coffee, tea, paddy, maize, sunflower, sugar cane, and livestock. In 2011 PASS supported loans in crop and livestock production (40%), farm mechanization (29%), agro processing and trading (27%) and rural trucks (3%).
The NGO has set special concessionary loan terms for women entrepreneurs to enable them qualify for more bank loans.
According to Mr Lujina, PASS has also achieved an excellent loan repayment rate of over 95 per cent, and the collaborating banks are progressively getting more encouraged in financing agricultural investments. Plans are underway to open new branches in Kilimanjaro and Mtwara regions this year. Currently, the NGO has offices in Mbeya, Mwanza, Morogoro and Dar es Salaam regions.
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