01.10.2018 (AllAfrica.com) - NMB Bank is set to venture into financing palm oil cultivation to increase edible oil production that will cover its huge deficit currently plugged through imports.

According to 2017 Bank of Tanzania Working Paper Series on sunflower sub-sector, local production of both factory and home extracted sunflower seed oil contributes about 40 per cent of edible oil requirement of 330,000 tonnes, with imported oil occupying a significant portion of the remaining 60 per cent.

Briefing Prime Minister Kassim Majaliwa at the just ended Association of Local Authorities (ALAT) Annual General Meeting in Dodoma over the weekend, the NMB Bank Business Head Wholesale Mr Filbert Mponzi said the bank is expected to partner with the Tanzania Agricultural Development Bank Limited (TADB) in boosting palm oil production in Kigoma Region.

"We are in talks with TADB on how we can finance this area while engaging in financial capability programmes to support palm tree farmers as it is known that NMB has the widest branch network in the country unlike TADB," he said.

The revelation came after the Premier had wanted the bank to chip in and support cultivation of palm tree in Kigoma Region.

Mr Mponzi told the PM Majaliwa that the bank has set aside more than 500bn/- for boosting performance of the agriculture sector in the country, with major focus on smallholder farmers.

"In making sure we cater for farmers in rural areas, we recently launched a mobile phone platform in order to allow farmers to open own bank accounts through their mobile phones and hence stand a better chance to benefit from capital loans offered by NMB bank," he noted.

He further said that the bank was rolling out capital loans to farmers who had already commenced typical cultivating schemes.

"Currently, the bank is supporting more than 1.5 million smallholder farmers who are cultivating various key cash and food crops," he detailed.

He said the bank will continue supporting all crucial sectors in the country with an eye to complement concerted efforts by the government to bring about socio-economic changes.

"This will only be realised with the close partnership with the Local Government Authorities (LGAs) as institutions directly dealing with people in the grassroot levels," he added.

Being part of the bank's 'Cooperate Social Responsibility (CSR), NMB will continue supporting other key sectors with a special focus to education - primary and secondary level and health sector.

The Prime Minister later hailed the bank for its commitment in supporting socioeconomic development in the country and challenged the bank to ensure it expands its outreach to have 100 per cent coverage in all the districts.

"Financial services are very significant in fostering economic development in the country, make sure you continue expanding your coverage in rural communities," he urged.