TANZANIA – Tanzanian dairy processor, Njombe Milk factory has clinched a Tz 696m (US$300,300) loan facility from state-owned development finance institution, Tanzania Agricultural Development Bank (TADB) to launch additional rescue package for the company.
According to TADB’s Acting Director of Credit and Business, Wende Mengele, Njombe Milk Factory project is on a growth trajectory and soon would start paying dividends to its shareholders.
Ms Mengele urged the management of the factory to work diligently to develop and roll out new products, which will easily be sold to the market given Njombe’s strategic advantage of serving Lindi, Mtwara, Ruvuma regions and regional markets of Malawi and Mozambique.
The Minister of Investment, Ms Angellah Kairuki, commended that the bank for its continued support in facilitating payments to farmers, rehabilitating the factory’s infrastructure and managerial assistance.
She urged the bank to continue supporting the factory to ensure that it reaches its full capacity utilisation of 20,000 litres per day from the current 3,000 litres, reports Daily News.
The main shareholders of Njombe Milk Factory are Njombe Livestock Farmers Organization (NJOLIFA) which owns 20 per cent shares, Njombe Local Government Authority with 19 per cent stake and the Roman Catholic Njombe 9.7per cent.
TADB has been financing agricultural projects in different regions in the country. Earlier in the month, the finance institution released Sh7. 7billion (US$3.3m) to coffee farmers’ cooperative unions to facilitate production in the 2020/21 season.
The cooperative unions to benefit from the funding are Kagera Cooperative Union (KCU) and Karagwe District Cooperative Union (KDCU) in Kagera region, northwest of Tanzania, the country’s main growing region of Robusta coffee.
This was followed by a partnership with commercial bank, National Microfinance Bank (NMB) to finance cassava farming in Handeni District, Tanga region with Tz3bn (US$1.3m).