Tanzania’s agricultural sector continues to get support from various spheres of the country with the recent deal between the East African state and Swedish government taking place. The Private Agricultural Sector Support Trust (Pass) and the Swedish government strengthened their trade union by penning a Sh45 billion Guarantee Agreement in support of the agricultural activities.
The seven-year partnership will contribute to increased business development support and lending through PASS guarantees to Micro, Small and Medium Sized Enterprises (MSMEs) in the country’s agricultural sector.
The Pass managing director, Nicomed Bohay and Chargé d’affaires in the Swedish Embassy in Dar es Salaam Ulf Källstig, signed the deal at the embassy on Tuesday afternoon.
“It’s my sincere conviction that the $20 million agreement we have just signed will amplify our endeavors to lift Tanzanian peasants out of poverty,” Mr Bohay said in his post-signing speech.
He appreciated the support as critical to Tanzania’s efforts to reduce poverty and develop small agribusinesses for industrialisation and economic development.
“Pass has always aspired to extend credit guarantees to as many beneficiaries as possible. The entry of Sweden as our latest partner not only boosts our capacity to serve more entrepreneurs in the agricultural sector, but also reassures us that out there, there is a reserve of potential allies, only waiting to get inspired by the work we do,” said Mr Nicomed.
Mr Källstig said through assisting in turning the unbankable into bankable, the Pass-Swedish guarantees will lower the risk of both banks and clients.
He said, “Sweden views Pass as a highly relevant partner in its role as an intermediary who understands both the banks and the agribusinesses…together we contribute to unleashing the potential of Tanzanian agribusinesses, and as such to poverty reduction and economic development.”
The collaboration with Sweden will help in expanding Pass’s guarantee volume and coverage, with smaller holder farmers and agribusinesses enabled to expand their businesses, increase productivity, create more jobs and increase incomes.