Economics: EFTA Invests 3.5 billion Tanzanian Shillings to Transform the Lives of Women and Youth Through Innovative Chicken Leasing Products - Wazalendo 25 Blog

Habari Mpya

3 Feb 2024

Economics: EFTA Invests 3.5 billion Tanzanian Shillings to Transform the Lives of Women and Youth Through Innovative Chicken Leasing Products

 

Mr. Nicomed Bohay, the Director of EFTA, personally distributing chicks to several beneficiaries who have received the chicken chick loan without requiring collateral. Approximately 30,000 chicks have been entrusted to about thirty chicken farmers located in diverse regions across the country. 
Some farmers who benefited from the EFTA chicken chick loan gathered for a group photo, capturing the moment with EFTA's CEO, Mr. Nicomed Bohay, and officials from the Arusha regional commissioner's office. This snapshot was taken during the official launch event of the poultry loans across the country. The photo was captured by our talented photographer.
Mr. Nicomed Bohay, the Director of EFTA, personally distributing chicks to several beneficiaries who have received the chicken chick loan without requiring collateral. Approximately 30,000 chicks have been entrusted to about thirty chicken farmers located in diverse regions across the country. 
Ms. Mwanamvua Ngocho, the Marketing Manager at Silverlands Tanzania Ltd, renowned for producing top-quality chicken chicks, collaborates with EFTA in providing chick loans to farmers across the country. Here, she is seen guiding the CEO of EFTA on a tour across diverse chick production zones. 

By Our Correspondent, Arusha, Tanzania

 

Equity for Tanzania Limited (EFTA), acknowledged as an Alternative Financial Service Provider at the 2023 Tanzanian Banking Awards, stands as a leading financial leasing institution empowering micro, small, and medium entrepreneurs, as well as farmers, through collateral-free equipment loans.

 

EFTA has pioneered a groundbreaking initiative once again, introducing innovative chicken financing without the need for collateral, marking a significant milestone in Tanzanian financial services.

 

This transformative chicken financing leasing product was recently launched following the approval granted by the Central Bank of Tanzania.

 

For a while now, the youth and women in Tanzania have constituted a significant demographic facing challenges in securing formal employment, contributing to heightened poverty levels within these groups.

 

With the Built Better Tomorrow – Youth initiative for Agribusiness (BBT-YIA) program running through to 2030, Tanzania is making a calculated gamble on its youth, hoping to foster a new generation of agribusiness leaders who are as proficient in modern agribusiness practices as they are rooted in the rich agricultural heritage of the land.

 

In support of these government initiatives, EFTA has introduced a pilot program offering collateral-free chicken leasing to young people and women. This approach allows these groups to actively participate in production activities through loans without collateral, addressing the challenges they face in accessing loans from mainstream financial institutions like banks.

 

"Many young people and women face hurdles in securing loans from our financial institutions due to a lack of collateral. Recognizing this challenge, we introduced collateral-free chicken loans. Chickens offer a short-term investment cycle, and within a few months, borrowers start seeing returns on their investment," highlighted Mr Bohay.

 

"For instance, with the Day-Old Chickens (DOC’s) we're providing, borrowers can start selling them after 6 weeks. This investment offers returns within a short period, encouraging numerous young people to explore this opportunity," Mr Bohay added.

 

Mr. Bohay further detailed that in the program's inaugural year, EFTA aims to offer up to 250,000 chicken loans nationwide, with over 31,000 chickens already delivered to farmers from diverse regions in the country.

 

"We have commenced training for farmers willing to avail themselves of these loans, and for those who have completed the training, we have already provided their chickens. Approximately 30 farmers have already benefited, and a total of 31,000 chickens have been distributed so far. Therefore, I encourage more young people to take advantage of these loans; it's a beneficial opportunity," emphasized Bohay.

 

In collaboration with Day Old Chickens (DOC’s) suppliers such as Silverland Tanzania Ltd., EFTA also provides financing for necessary items like feed, vaccines, and drinkers on loan until farmers are ready to market their chickens.

 

Mwanamvua Ngocho, the Marketing Manager of Silverlands Tanzania Ltd., expressed strong confidence in this chicken leasing product loan program, stating its potential to enable many youths and women in the country to engage in poultry farming.

 

"Previously, our clients were experienced farmers with substantial capital. However, with EFTA's introduction, more opportunities are opening up for young people and women. We are fully committed to providing comprehensive training on modern poultry farming and producing high-quality Day-Old chicks," mentioned Ngocho.

 

"We aspire to witness economic prosperity among our people as poultry farmers, as well as the enhancement of community health through the consumption of high-quality chicken meat and eggs from our farmers," Ngocho added.

 

Daniel Loroku, the Acting Arusha Region Assistant Secretary for Economy and Production, expressed gratitude to EFTA and Silverlands Tanzania Ltd for supporting young people through this collateral-free chicken leasing program. He views this as a significant opportunity to empower many youths and women to be self-employed through poultry farming.

 

Flora Danford Sando, one of the program's beneficiaries, shared her story after completing her studies and struggling to find employment.

 

"After finishing my studies, I searched for a job without success. I tried to secure loans from banks to start a business but faced difficulties. Feeling discouraged, I learned about this collateral-free loan from EFTA," recounted Sando.

 

I swiftly engaged with EFTA, adhering to their procedures, and completed a comprehensive three-week training at the Silverlands Poultry Training Centre in Iringa. Today, I've acquired over five hundred Day-Old Chicks along with top-notch feed, drinkers, and vaccines. My intention is to raise them for 60 days and target a period of heightened demand for chicken meat for sale. Upon the successful sale, I'm eager to repay my loan and expand my business," she expressed joyfully.

This chicken leasing program for poultry farmers provides a solution to the unemployment challenge faced by many youths and women. It offers abundant opportunities for youth to become self-employed and consequently alleviating them from poverty by boosting their income. The impact is also to address the social problems of malnutrition and stunting in rural communities as through this program chicken meat and eggs shall provide necessary nutrition to rural households, and hence consequently contributing to the Tanzanian national inclusive economic growth.

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