SMALLHOLDER FARMERS CREDIT GUARANTEE SCHEME
Date
2025-04-28
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Publisher
TADB
Abstract
The Tanzania Agricultural Development Bank (TADB) offers the Smallholder Credit Guarantee Scheme (SCGS), a financial product designed to enhance access to credit for smallholder farmers in Tanzania. The SCGS came into operation in 2018 aims to mitigate the risks faced by financial institutions in lending to small-scale farmers by providing credit guarantees for loans extended to them. By improving the availability of affordable financing, the SCGS supports the growth and development of agricultural value chains, increases productivity, and contributes to food security. The scheme targets smallholder farmers engaged in various agricultural activities, fostering inclusive economic development and improving the livelihoods of rural communities. Through its risk-sharing mechanism, the SCGS encourages financial institutions to lend to underserved farmers, ensuring that they can invest in necessary resources such as inputs, equipment, and technology, thereby boosting agricultural output and sustainable development. This initiative aligns with TADB's broader mandate to promote agricultural development and empower Tanzanian farmers, ultimately enhancing the overall agricultural sector's contribution to the nation's economy. The video speaks more of SCGS
Description
SMALLHOLDER FARMERS CREDIT GUARANTEE SCHEME