Financing Agriculture.

Agriculture of the most developing Countries is substance agriculture. The shift from subsistence to commercial agricultural production requires funds. However the livelihood of local people in most developing countries depends on agriculture. Financing for investments in agriculture is scarce even for large investors. Financial institutions are reluctant to accept the risks prevalent in the agricultural sector, such as droughts, floods, pests and diseases.

Challenges of Financing Agriculture.

Financing local farmers becomes difficult due to the risk factors and poor infrastructure. The risk accompanied with Agriculture include production risks linked to natural hazards (such as droughts, floods and pests), farmers’ weak ability to provide collateral assets (either because the farmer lacks title to land to offer as a loan guarantee or the value of the land may be too low) and the volatility of prices.

Financing Local Farmers and small agricultural entrepreneurs.

Farmers and small entrepreneurs need finance to allow them to expand production and diversify products. KEAS as an organization mobilizes finance, through community saving system and non-formalized group mechanisms. At our local area groups of men and women involved in farming activities can form organized groups. Such groups can lend each other and get external fund supports from our organization.

 

Karagwe Entrepreneurs Advocacy Support (KEAS) is a Non-Governmental Organization founded on January 2012 and was fully registered on February 2012 under section 12 (2) of the Non-Governmental Organization Act No.24 of 2002 with registration no.000NGO/00005278, to carry out its operations in Tanzania Mainland.

We have been working with the community for about three years since we started. Several projects have been done and others are proceeding. Ongoing projects now include, Entrepreneurship and Financial Education, Computer skills and secretarial services, Tree Nurseries, Aforestation and bee keeping, Microfinance and Microsaving.

Our main objective is to fight poverty through income generating activities. We have successfully created jobs and businesses to our young entrepreneurs by training them on how to run small businesses and how to manage their finances.

Our first project to undertake was Entrepreneurship and Financial Education.This project opened the minds of people who were jobless, with no ideas of business.Women and men started involving in different kinds of business. This project is still going on though it has some challenges like lack of training facilities like projectors, lack of training halls and  transport facilities for our staff to reach the targeted groups in the community.

Microfinance

Microfinance project started on November 2014 and has become one of our main project. This project was designed to support our trainees who had no capital for business start up. Slowly we tarted supporting the trained entrepreneurs by giving the small amount of funds for business startup. Up to now we have covered two districts namely Karagwe and Kyerwa of Kagera region located on North West of Tanzania. About 900 members of the community have enjoyed our services including women who are living in rural area.

Although we are a Non Profit Organization we do charge small interest on our loans in order to cover its costs and achieve operational sustainability. The charged interest on our loans supports our credit staff in the field, allowing us to bring services to customers who are living even in remote areas; the interest charged also enable us to borrow, re-lend and repay commercial capital, which means we are likely to reach many more low-income customers; and ensure that we remain reliable resource for our customers.

Many Low- income Entrepreneurs don't have the kind of collateral assets most commercial banks and Financial Institutions require;therefore members organize themselves in groups and guarantee each others' loans. They run a group in a democratic way, electing their own leaders,designing their own bylaws, managing funds, supervising loan repayments and enforcing penalties for non compliance.

 

 

ABOUT US

Karagwe Entrepreneurs Advocacy Support (KEAS) is a Non-Governmental Organization founded on January 2012 and was fully registered on February 2012 under section 12 (2) of the Non-Governmental Organization Act No. 24 of 2002 with registration no. 000NGO/00005278, to carry out its operations in Tanzania Mainland.

We have been working with the community about three years since we started. Several projects have been done and others are proceeding.

Ongoing projects now include,

  • Entrepreneurship and Financial Education,
  • Computer skills and secretarial services,
  • Nursery Trees,
  • Aforestation,
  • Bee keeping,
  • Microfinance and Agri Finances.

Microsaving is a project within Microfinance program,it is a semi-formal saving consisting of small deposit accounts offered to lower-income entrepreneurs or individuals as an incentive to store funds for future use. It is a mobilization of savings through deposit services run by our organization for the purpose of helping poor people- particularly poor women- to manage their own economic affairs, and to 'lift' themselves and their families out of poverty. Microsavings accounts work similar to a normal savings account, however, are designed around smaller amount of money.

Savings program enable those without a reliable and regular income to save funds to be used in the event of disaster or misfortune. Micro-savings accounts help ensure safety and security of funds and pay a small bonus on the money saved.

This program is offered basically, to entrepreneurs and lower-income earners as a way to encourage savings for future business.

Microsavings as means of managing vulnerability.

Vulnerability can be understood as the likelihood that individuals, households, or communities will fall into or continue to experience poverty in future. The need of poor households to reduce vulnerability can limit their ability to pursue strategies for the economic and social improvement of the household members.Practices of savings that can make people feel more secure can foster their capacity to take the small risks necessary to improve their livelihoods. Therefore there is only one as aspect that poor people have for managing vulnerability.

Why microsavings?

There are several advantages in small savings:-

  • The saving does not require external approval
  • Savings can be used as collateral for credit
  • Savings pools risk and can be used against any hazard
  • The amount saved generates an interest each month and every year
  • It creates household budget and control
  • It is a way of creating capital for future business
  • Drawings and saving is regularly done without complications
  • Customer's account involves no charges in drawings and depositing
  • Savings protects present and future- well being against hazards and stresses

Microsavers include not only micro-entrepreneurs or lower-income earners, but also those poor people relying on remittances, pensions and other forms of support.Even children often have access to small amounts of cash and are increasingly being encouraged to "develop saving habit".

 

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