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The Tanzanian government has taken significant steps to reduce its debt to maize farmers, disbursing Sh20.8 billion across three major agricultural regions as part of efforts to settle outstanding payments.
The initiative addresses a portion of the Sh52.4 billion owed to farmers as of December 2024, with full repayment targeted by January 10, 2025.
Agriculture Minister Hussein Bashe announced the payments on Friday, December 13, highlighting the government’s commitment to fulfilling its financial obligations. The payments were distributed to farmers in the Songwe, Rukwa, and Ruvuma regions, marking a critical milestone in the debt settlement plan.
According to Bashe, the government, through the National Food Reserve Agency (NFRA), had procured maize and other grains worth Sh334.22 billion by December 11, 2024. The Sh52.4 billion debt to farmers is being cleared in phases, prioritizing earlier deliveries under the First In, First Out (FIFO) method.
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“As of December 13, Songwe received Sh6.8 billion, and Sh7 billion was allocated for both Rukwa and Ruvuma regions,” Bashe stated. He further emphasized that the government aims to improve its payment systems to prevent future delays in the procurement process.
The minister reassured farmers of the government’s commitment to fully settle the debt by January 10, 2025, while urging cooperation to streamline the ongoing repayment process. This move reflects broader efforts to support the agricultural sector and strengthen the livelihoods of farmers in key grain-producing areas.
As the disbursement continues, the government’s focus remains on achieving timely and transparent payments, ensuring trust and stability within the sector. Farmers in affected regions are optimistic that the phased approach will bring much-needed financial relief and bolster preparations for the next planting season.
