Born and raised in the farm area in Nyakatuntu, Kyerwa district, Bukoba region, Abdulmajid Nsekela, Group CEO of CRDB Bank Plc, has a deep-rooted passion for agriculture. His childhood and teenage memories are filled with the sights and sounds of the farm, and this passion is driving a transformation in the agricultural sector in Tanzania.
Nsekela's journey from the farmlands of Nyakatuntu to the helm of the largest Bank in Tanzania, CRDB Bank, has given him unique insights into the challenges faced by smallholder farmers in the country. His personal connection to agriculture has fueled his commitment to empower smallholder farmers and ensure the sector's growth.
Nsekela, reflecting on his roots, remarked, "Growing up on a farm instilled in me a profound love for agriculture, and I know the struggles they face. It's not just a sector; it's a way of life, and it's this connection that drives our mission at CRDB Bank. We are dedicated to being their partner in progress, bridging the gap between aspirations and opportunities."
Speaking eloquently at the 7th AgriFin Learning Event, Nsekela passionately unveiled his vision for a transformative agricultural sector, one characterized by the seamless availability of funds and agricultural inputs to empower farmers. His message resonated with a resounding call to action, emphasizing the critical need for fostering collaborative partnerships among a diverse array of stakeholders, both the public and private sectors.
Nsekela emphasized, "To build a thriving agricultural sector, collaboration is paramount. We need to unite governments, businesses, and communities in a shared commitment to uplift our farmers and secure the nation's food future. It's a collective effort."
With a commanding 43% market share in agricultural financing, Nsekela said CRDB Bank's approach to agriculture is nothing short of strategic. The bank has been working closely with the Tanzanian government to provide farmers access to vital resources, including funds, fertilizers, and agricultural equipment. Furthermore, the bank collaborates with suppliers to guarantee reliable access of essential inputs to the farmers.
In an effort to effectively reach individual farmers, CRDB Bank has established partnerships with Agricultural Marketing Cooperative Societies (AMCOS) and cooperative unions. Among the notable initiatives resulting from this collaboration is the Warehouse Receipt system, allowing farmers to access funds against their stored crops.
CRDB Bank's steadfast commitment to agriculture is prominently displayed in its substantial agricultural portfolio, boasting a total commitment of TZS 801 billion (USD 334 million), making it the largest in the country. This expansive portfolio extends support to a wide spectrum of agricultural sectors, ranging from input suppliers to agro-processors, agro-commodity traders, and beyond.
Nsekela emphasized, "Our financial commitment speaks volumes about our dedication to agriculture. We invest in the entire agricultural ecosystem, from suppliers to processors, ensuring a thriving future for all. Through our collaborations, we have created pathways for farmers to access financial support when they need it most. We stand by them in times of plenty and scarcity."
In a pioneering move to make banking services more accessible to farmers, Nsekela noted that the Bank’s FahariKilimo account empowers over 50,000 farmers, while also providing access to loans and health insurance through a collaborative effort with the National Health Insurance Fund (NHIF). The bank also facilitates farmers' access to banking services through AMCOS or individual agents, CRDB Wakalas, offering additional income opportunities.
Distinguishing itself as the first bank in Sub-Saharan Africa accredited by the United Nations Green Climate Fund (GCF), CRDB Bank launched the Tanzania Agriculture Climate Adaptation Technology Deployment Program (TACADTP) this year.
This visionary program allocates USD 200 million to finance climate-resilient agriculture, with the aim of empowering over 1.2 million direct beneficiaries and 4.9 million indirect beneficiaries. It stands to make a significant impact on the nation's climate adaptation in the agricultural sector.
Nsekela expressed, "Climate adaptation is no longer a choice but a necessity. With TACADTP, we are sowing the seeds of resilience, benefiting millions of Tanzanians."
Nsekela further noted that the Bank's foundation, CRDB Bank Foundation, plays a pivotal role in supporting farmers across Tanzania. The foundation offers financial literacy training and provides funds to micro-entrepreneurs through programs like IMBEJU, with TZS 5 billion set aside to finance micro-entrepreneurs in various sectors, including agriculture.
In his words, "We believe in empowering the grassroots. The CRDB Bank Foundation is a lifeline for micro-entrepreneurs, ensuring they prosper and contribute to our nation's growth."
Looking forward, Nsekela exuded optimism regarding the potential for digitized farming and ongoing partnerships with government institutions, fintech solution providers, and stakeholders across the agricultural value chain.
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