$10 million investment to support financing for Tanzania’s small farmers and cooperatives
GWFP lends or provides risk mitigation solutions to banks in low income countries which in turn provide lending to small farmers and small businesses. These loans are backed by the harvested goods farmers deposit in warehouses.
Agriculture is a crucial sector for Tanzania’s economy, employing approximately 80% of the country’s working population and contributing about 30 percent to GDP.
GAFSP has invested $10 million in a $25 million GWFP funded line to Cooperative Rural Development Bank (CRDB), Tanzania’s largest agribusiness lending institution. CRDB is the perfect partner to reach Tanzania’s small farmer community, maintaining the largest warehouse financing portfolio in Tanzania’s coffee, cashew nuts and cotton sector.
Working with over 800 clients including SMEs and farmer cooperatives, and standing upon fourteen years of warehouse financing operations, CRDB will reach approximately 6,000 farmers with IFC’s support.
The GAFSP Public Sector Window is also funding the Expanding Rice Production Project in Tanzania.