Limited Access to Capital Remains a Major Constraint for the Poultry Sector
Access to finance emerged as one of the most significant issues discussed during the stakeholder meeting, with both industry representatives and financial institutions acknowledging systemic challenges within current lending structures.
All five financial institutions in attendance confirmed that their agricultural lending portfolios are structurally skewed in favor of the crop and commodities sector, leaving the livestock industry—particularly poultry—underfunded.
By way of illustration, CRDB reported total agricultural sector lending of TZS 3.2 trillion, of which approximately TZS 400 billion was allocated to the livestock sector. Within this allocation, the poultry sector receives less than 5% of total agricultural financing across the banks represented.
Beyond this structural imbalance, stakeholders raised concerns regarding the practical experience of accessing available financing.
While loan products are often marketed as straightforward, with short turnaround times and single-digit interest rates, farmers and investors reported a different reality on the ground.
Key challenges highlighted include:
- Delays in loan disbursement beyond stated timelines
- Complex and lengthy approval processes
- Additional hidden costs, particularly insurance charges
- Reduced overall attractiveness of financing facilities
Stakeholders emphasized that these barriers significantly limit the ability of poultry producers and investors to access capital, ultimately constraining sector growth and investment.