Under the MoU, customers will have the opportunity to benefit from Agricom Africa's value add technologies, which cover the entire agricultural cycle and are designed to enhance productivity. Furthermore, Stanbic Bank will extend up to 80% financing, payable over some of the longest terms (up to 60 months) in the market.
As part of Standard Bank Group, the largest banks in Africa by assets, Stanbic's financing will be available for a diverse range of high-quality agricultural equipment, including tractors, power tillers, harvesting, and post-harvesting machinery, as well as accompanying implements that promote sustainable farming practices.
Through this strategic partnership, technology transfer, competence and mechanization will take center stage, propelling Stanbic’s agribusiness to new heights and with assistance of Agricom’s long experience to unlock together the country's immense agricultural potential and give immediate access to such solutions with their existing trading customers.
This private sector initiative aligns perfectly with Agricultural Agenda 10/30, aiming to grow the agricultural sector by providing accessible loans and insured equipment to agribusiness entrepreneurs as they grow and access a Pan African bank with robust players like Agricom Africa to support.
John Mosha, SBT’s head of vehicle & asset financing emphasized the transformative impact of the partnership.
Mosha stated: “Through our collaboration with Agricom, we will empower farmers with vehicle and asset financing facilities, including loans for agri technology and equipment purchases, farm equipment leases among other options, making them not only more financially liquid and productive but also farm-smart.”
Mosha added: "By ensuring access to modernized tools of production, farmers can automate their farm activities, unlock their agribusiness potential, and scale up their operations, ultimately contributing to Tanzania's agricultural tradeability."
Fredrick Max, Head of Business and Commercial Banking at Stanbic Bank Tanzania, highlighted the bank's commitment to supporting agriculture value chains. He stated, "We have been doing asset financing and supporting other sectors for a long time, but we now have a strategy to increase our footprint in the agricultural sector. Our financing solutions are meticulously structured to address the production, processing, and logistics needs of agribusinesses. We firmly believe that modernization and automation will enable Tanzania's agriculture sector to achieve the envisioned 10% annual growth, driving the nation's socio-economic development."
Max also underscored Stanbic Bank's dedication to nurturing women and youth entrepreneurs in agribusiness through their Business Incubator program.
He explained: "Our incubator program prioritizes aspiring and budding youth and women entrepreneurs in the agribusiness. We provide them with capacity building, facilitate crucial corporate and institutional relationships within the agricultural sector, and offer access to potential growth partners along the agribusiness value chain."
Agricom's Group Chief Executive Officer, Alex Duffar, enthusiastically expressed his optimism about the partnership, stating, "Agriculture plays a pivotal role in our nation's growth. By accelerating mechanization in the sector, we can pave the way for a tradeable economy, considering its significant contribution of 65% to our GDP. Mechanization serves as a key driver for agri-led industrial development and lays the foundation for sustainable food systems, fostering long-term food security in Southern and Eastern Africa. At Agricom Africa, we are committed to being a catalyst for mechanized growth through valuable partnerships like the one we have signed with Stanbic Bank Tanzania."
Duffar emphasized that the MoU would provide farmers with enhanced access to reliable and innovative agri-equipment. The collaboration offers a coordinated quick turnaround time on loan applications, ensuring that farmers can swiftly benefit from quality equipment on their farms. Agricom Africa is well-regarded for its innovative spirit, and today, we showcase to you one of our latest advancements in post-harvest management—the Mobile Grain Dryer—a commercial equipment designed for farms of all sizes. Additionally, the introduction of new 4WD drivelines for tractors, such as the Kubota EK4-751, demonstrates Agricom's commitment to cutting-edge technology and continual improvement in the agricultural sector.
Mbeya Regional Commissioner, Juma Homera, stated that the southern highlands regions lead in agriculture in Tanzania. Therefore, this agreement will add value to the agricultural sector and help farmers move away from traditional farming methods to modern machinery in production.
RC Homera emphasized: “For agriculture to succeed in the present time, it requires modern machinery. This agreement, empowering farmers with agricultural tools between Stanbic Bank, present across Africa, and AgriCom, the leaders in agricultural tools and technology, will facilitate agribusiness and support the government's goal to increase agricultural by 10 percent by the year 2030.”
Fredrick Max said: "We have heeded the Ministry of Agriculture's call of 'Kilimo ni Biashara' through strategic partnerships that drive private sector investment into the agriculture value chain. Together, we aim to realize the 10 percent annual growth rate for the crops sub-sector by 2030."
This partnership between Stanbic Bank and Agricom Africa represents a visionary step towards revolutionizing Tanzania's agribusiness landscape with two Pan African visionary institutions rallied under a common goal to drive and enhance growth of the Tanzanian food value chain. By combining financial expertise and cutting-edge agricultural equipment, they pave the way for a growth, prosperity and a sustainable future for Tanzania’s agribusiness players and the entire nation.