VP: WHY POVERTY ALLEVIATION DRIVE CAN’T BE ACHIEVED
Vice President, Dr Mohamed Gharib Bilal.
“Growth of the national income per capita though
averaged 4 per cent, it is as low as 1 per cent for the rural economy,”
Dr Bilal said.
He said when opening the 17th Conference of
financial Institutions here that it was not surprising, therefore, the
33.4 per cent rural poverty was significantly higher than the urban one
which stood at 21.7 per cent.
Poverty in the country cannot be seriously
addressed without addressing constraints holding back agricultural
productivity, including those related to financing of smallholder
agriculture and agribusiness, he said.
The conference has since its inception in 1980
been serving as a platform for heads of financial institutions,
academicians, and practitioners to deliberate on issues pertaining to
the banking industry.
Themed Financing Agriculture and Agribusiness
Challenges and Opportunities in Tanzania this year, the two-day
conference participants will share thoughts and experiences and chart
out ways for expanding finance to the sector.
The Governor of the Bank of Tanzania, Prof Benno
Ndulu, said agriculture was more effective in raising income of the poor
by two to four folds compared to other sectors.
“In fact, over two-thirds of the working
population derives its livelihood from agriculture with the smallholder
farmers constituting an important segment of the agricultural value
chain,” he said. He said limited access to finance was, however, an
impediment to farmers in adopting better technologies to improve
productivity, prompting the National Financial Inclusion Framework
devised in response to the 16th conference last year to set targets and
actions.
As a result of financial innovations and
information and communication technology, Prof Ndulu said 57 per cent of
adults currently had access to formal financial services compared to
barely 15 per cent in 2009.
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