Tanzania’s Credit Initiative Sparks Revival in Kagera Coffee Sector. Kagera Region, Tanzania – A renewed government initiative aimed at expanding access to credit has sparked cautious optimism in the struggling Kagera coffee industry. For decades, coffee has been the economic backbone for thousands of families in this region.
However, falling productivity and climate pressures have strained many farmers, leaving them in dire need of support.
In response, the Deputy Minister for Regional Administration and Local Government, Festo Dugange, outlined government strategies to empower smallholder coffee farmers and boost productivity. Under the program, local councils are required to allocate 10 percent of their revenues as loans to youth, women, and people with disabilities.
Furthermore, the Tanzania Agricultural Development Bank (TADB) has expanded targeted funding streams, offering loans at interest rates below 9 percent.
In the 2024/2025 financial year, over 742. 67 million Tanzanian shillings were disbursed to Kagera, reflecting the government’s commitment to the region’s agricultural sector. Despite challenges such as pests, diseases, and unpredictable weather patterns, stakeholders are meeting to discuss ways to improve productivity and strengthen value chains.
Bukoba District Commissioner Erasto Sima emphasized the need for coordinated action among government officials, researchers, cooperative unions, and private buyers.
The TADB’s credit injection is seen as a strategic move to revitalize Kagera’s coffee production, which is expected to increase by 36% in the 2025/2026 season. This growth rate surpasses the national average of 7-10%, highlighting the region’s potential to become a cornerstone of Tanzania’s agricultural prosperity.
As the initiative progresses, the focus is not only on increasing production but also on improving quality, with stakeholders advocating for better seedlings, enhanced crop management training, and an increase in the levy collected by Agricultural Marketing Cooperative Societies (AMCOS) to strengthen their market management capacity.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Panafricanvisions
Source: Pan African Visions
