The government has announced that the long awaited Tanzania Agricultural Development Bank (TADB) to empower farmers in the country will commence operations in the next financial year.
Winding up her budget estimates on Wednesday, Finance minister Saada Mkuya said the bank will commence its operations during the fiscal year 2014/15 after finalizing all prerequisite preparations and at which point the ministry is set to obtain the operation license and employ workers for the bank.
According to her, the ministry has already selected and assigned the bank’s board of directors, setting ground for operations to commence.
The board will be responsible for making policies, regulations, prepare business plan and oversee the activities of the bank so that the government’s plan to increase agricultural production is achieved.
“Through the bank, the government expects to see farmers have more access to capital loans both short and long term periods that will boost their agricultural activities and improve their household incomes as well as the country’s revenue in general,” Mkuya explained.
She said the government projects a 10 per cent increase in national income from the expected annual growth of the agricultural sector as a result of increased funding to farmers.
She also said the nation can expect increased employment, increased agricultural commodities for trade, decrease in rural-urban migration and availability of more agricultural food products across the country.
The government is the only shareholder of the bank, and is responsible to offer the seed capital of 100bn/- and keep on allocating 100bn/- in its annual budget to ensure the bank’s start-up capital reaches 800bn/- ($500 million).
Explaining, the ministry’s permanent secretary, Servacius Likwelile said formation of the bank is the result of implementing the resolutions reached in the 2012 cabinet of minister’s meeting that was chaired by President Jakaya Kikwete.
To put to effect the resolution, the Finance ministry formed a Task Force to oversee the formation of the decided TADB, appointed Steering Committee comprised of permanent secretaries from President Office-Planning Commission, Prime Minister’s office, Attorney General, Finance ministry, ministry of Livestock Development and Fisheries, ministry of Industry and Trade, Bank of Tanzania Governor and executive director from Tanzania investment Bank (TIB) and formation of Nomination Committee.
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