AGITF, Azania Bank Sign TZS 10bn Agriculture Loan Guarantee Deal for Youth and Women in Mainland Tanzania

The government of Tanzania continues to design and accelerate innovative agricultural capital loan schemes to enable youth and women across the country to venture into agriculture effectively.

The ongoing initiative, which, among other objectives, targets to boost the country’s food security, has continued to attract support from private sector players, signaling good positive prospects for achieving its intended results.

The vision behind this crucial initiative is to ensure that young farmers are financially empowered to mechanise their farming operations, applying recommended inputs and use improved kernels.

The establishment of modern irrigation schemes and crop storage warehouses is among the key interventions being pursued under this strategy to boost agricultural  production and productivity.

Amid the numerous initiatives introduced by the government to enhance youth and women’s participation in agriculture is a Building a Better Tomorrow (BBT) program, launched in January 2023.

The youth- led flagship program was designed to transform the agricultural sector by engaging youth and women in commercial agribusiness.

The program targets youth aged 18 to 35 across Tanzania, including post-secondary graduates seeking incubation opportunities  and existing young agripreneurs for business acceleration.

However, despite some achievements recorded since its launch, the program has faced challenges related to limited access to capital and credit facilities, constraining beneficiaries’ to expand their agricultural investments and increase production.

To address this challenge, the Agricultural Inputs Trust Fund (AGITF) has allocated a TZS 10 billion loan guarantee facility for youth and women through Azania Bank. The initiative is expected to unlock more than TZS 20 billion in total credit capacity, with a strong focus on irrigation farming.

On October 9, 2026, AGITF and Azania Bank officially signed an agreement paving the way for the rollout of the crucial agricultural loans.

Speaking at the signing ceremony, AGITF Executive Director Ms Mwanahiba Mzee said the newly launched financial assistance window aims to equip targerted farmers in Mainland Tanzania with technical support and capacity building opportunities.

She said another key area of focus would be reviewing relevant policies and regulations to ensure that young people and women engaged in Tanzania’s agricultural sector have greater access to capital loans.

“AGITF is operating under the ministry of agriculture, and we will therefore continue to take the lead in lobbying decision- makers  and policymakers to introduce favourable policies and regulations that enhance access to capital loans for youth and women in agriculture sector,” she said.

Ms Mzee expressed high commitment to continuing to provide financial support for major bankable agricultural projects in Tanzania through Azania Bank.

“To start with, we have disbursed a TZS 10 billion loan guarantee facility targeting youth and women. However, we will expand the package after being satisfied with the effective utilisation of the loans by the intended beneficiaries,” she said.

She noted that the creation of new jobs, increased production and productivity, and improved incomes would be among the key criteria used to assess the performance of beneficiary farmers.

For his part, Azania Bank Senior Manager for Agribusiness and SME Banking, Mr Augustino Matutu, commended AGITF for selecting the financial institution to facilitate the effective rollout of capital loans under the newly launched scheme.

He assured AGITF that the bank had a strong track record in providing loans to farmers across the country, pledging that eligible beneficiaries would access the financing fairly and at favourable interest rates.

“For instance, over a period of five years, we provided loans worth TZS 700 billion to various youth entrepreneur groups, including farmers,” he said.

“This cooperation we are signing today with AGITF will further strengthen our commitment to extending more loans to boost the performance of the agricultural sector in the country,” he added.

With its extensive branch network across the country, Mr Matutu expressed optimism that the partnership would enable even farmers in rural areas to access the much-needed financing.

ABOUT AGITF

The Agricultural Inputs Trust Fund (AGITF) (Mfuko wa Udhamini wa Pembejeo za Kilimo) is a government institution in Tanzania established under Act No. 9 of 1994, as amended by Act No. 2 of 2002 (Cap. 401).

AGITF works to finance the importation and distribution of agricultural inputs following policy changes and the removal of subsidies.

In providing financial assistance, the Fund offers loans and financial backing to individual farmers, groups, cooperatives, including Savings and Credit Cooperative Societies (SACCOS) and Agricultural Marketing Cooperative Societies (AMCOS), as well as agricultural institutions. In terms of technical support, AGITF finances advisory services and technical assistance related to the acquisition, distribution, and use of agricultural inputs.

Key Loan Programmes and Offerings

Mkulima Loan: This facility is designed for individual farmers, registered groups, companies, SACCOS, and AMCOS to finance crop cultivation, farm operations, value addition, packaging, and agricultural machinery, such as power tillers and modern silos. The interest rate is approximately 7 per cent per annum, with repayment periods of up to 36 months.

Equipment and Infrastructure Loans: These loans finance the acquisition of hand tractors (power tillers), tractor repairs, irrigation systems, greenhouses, farm structures, livestock and poultry housing, and storage facilities.