Agricultural credit

Final PES covers the period 2/79-2/80 and is based on document review, site visits, and interviews with TRDB staff and village leaders. The project achieved its purposes. TRDB has become a vigorous and increasingly effective rural credit institution and Tanzania is now virtually self-sufficient in food production. TRDB has wisely directed its lending to the village rather than the individual-farmer level. Bank personnel are generally well-trained and well-qualified; this is particularly true for those involved in lending and collection. Improved institutional capabilities at TRDB result from the excellent short- and long-term technical assistance (TA) provided to the bank (and on which it is still dependent), from formal and in-house training programs for bank employees, and from the bank"s use of returned participants in key positions and in training programs. TRDB has also continued to decentralize many credit programs and to broaden the authority of field personnel. There are, however, a number of problems still affecting TRDB"s ability to improve and expand its operations. These include TRDB"s lack of reliable research and data collection capabilities; its inadequate accounting equipment and relatively low level of professional training among accounting personnel; its inadequate physical facilities and cash storage capabilities; the limited transport and manpower resources upon which it can draw; and its almost complete dependence on external donor funding. The following action decisions are made: (1) in planning for a small farmer credit project, USAID/T, TRDB, and the Tanzanian Government should provide continuity and funding resources for participant training, TA, transport, commodities, and should maintain or upgrade the National Food Credit Program; (2) consideration should be given to a centralized research and data gathering facility, possibly housed at TRDB, in support of rural development and credit program planning; and (3) TRDB should resolve problems of coordination with parastatal institutions, reduce dependence on rural donors, upgrade its headquarters and field facilities, expand its in-house training and client education programs, and complete its decentralization program with all due speed.