Joseph Isangura
Tanzania has rolled out a new two million US dollar partial credit guarantee aimed at supporting more than 550,000 smallholder farmers nationwide.
The initiative is designed to improve fertiliser availability, enhance supply chain efficiency, and boost agricultural productivity, particularly for small-scale producers who have historically faced financial and logistical barriers.
Unveiled during the Nane Nane Agricultural Exhibition in Dodoma, the scheme provides agro-dealers with financial backing to stock fertiliser on credit, reducing the risks associated with supply shortages and high costs. At the same time, farmers benefit from training in modern and sustainable fertiliser use, helping ensure that higher access translates into improved yields and long-term soil health.
The partial credit guarantee works by de-risking fertiliser distribution through government-backed assurances, a model commonly referred to as a credit guarantee scheme. Such mechanisms have proven effective in other countries for facilitating private-sector participation while safeguarding vulnerable producers. For Tanzania, where smallholders constitute the majority of the agricultural workforce, this scheme represents a major step toward modernising input supply systems and securing food production.
Agriculture in Tanzania remains a cornerstone of the economy, contributing significantly to employment and gross domestic product. By improving fertiliser access, the government hopes not only to strengthen domestic food security but also to expand participation in regional markets under the Southern African Development Community (SADC). The programme aligns with broader strategies to integrate smallholder farmers into regional trade networks, enhancing economic resilience and market opportunities.
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Beyond immediate agricultural gains, the scheme exemplifies innovative financial solutions that could transform rural economies. By guaranteeing supply, stabilising prices, and connecting farmers with technical support, Tanzania is creating a platform for sustainable growth. Observers note that if successful, the programme could serve as a blueprint for other African nations seeking to strengthen agricultural supply chains and empower smallholder communities.
The implementation will be led by national institutions including the Tanzania Agricultural Development Bank and the Tanzania Fertilizer Regulatory Authority, with additional support from development partners such as the African Development Bank. Together, these institutions are expected to monitor impact, ensure transparency, and expand reach to underserved regions, particularly in remote and high-potential agricultural areas.
Experts believe that enabling over half a million farmers to access affordable fertiliser could significantly increase crop productivity, enhance rural incomes, and support national development goals. This initiative, they argue, demonstrates how targeted public-private partnerships can modernise agriculture while promoting economic inclusion.
As one farmer attending the launch put it, “With this support, we can plan our crops confidently, knowing fertiliser will be available and affordable. It gives hope for better harvests and a stronger future.”
This programme marks a strategic push to combine financial innovation, infrastructure support, and training to strengthen Tanzania’s agricultural sector, potentially reshaping the livelihoods of millions and enhancing the country’s role in regional food systems.
