- Over TSh300 million already disbursed as digital innovation reshapes rural financing
By Business Insider Reporter
In a bold move to expand financial inclusion in Tanzania’s agricultural sector, the Private Agricultural Sector Support (PASS) Trust has launched a mobile-based lending platform designed to empower smallholder farmers -particularly women and youth – who often face barriers in accessing formal credit.
This landmark initiative, a collaboration between PASS Trust, Victoria Finance and YAS Mobile, is part of the Trust’s wider strategy to integrate digital solutions into agricultural finance.
The platform, launched in late 2024, has already disbursed loans exceeding TSh300 million, with demand rising steadily in underserved rural communities.
Speaking to Business Insider, PASS Trust Managing Director, Mr. Yohana Kaduma, said the mobile lending platform represents a shift toward accessible, affordable, and inclusive financing.
“We are transforming how rural farmers – especially women and youth – access finance. With just a mobile phone, they can now get loans within days,” he said.
The initiative is backed by an innovative credit guarantee mechanism, with PASS offering to cover up to 80 percent of the loan value for women and youth – far higher than the typical industry standard of 50–60 percent.
This de-risking approach is intended to encourage lenders to extend credit to segments that are traditionally marginalised in formal finance.
“It’s a simple but transformative model,” Kaduma explained. “Victoria Finance provides the loans, PASS Trust secures them through our guarantee fund, and YAS Mobile enables direct connection between borrowers and lenders through mobile technology.”
The platform is already demonstrating early success by breaking down geographic and bureaucratic barriers. Farmers no longer need to travel long distances or provide conventional collateral to access credit. With mobile verification and automated screening, the process is streamlined, fast, and transparent.
Mr. Kaduma emphasised that the service was built with equity in mind.
“Digital lending is leveling the playing field. We’re not just facilitating access to finance – we’re catalysing rural entrepreneurship, improving productivity, and strengthening Tanzania’s agricultural value chains,” he said.
Agricultural finance experts have praised the initiative for tackling one of the sector’s most persistent challenges: access to affordable capital.
By embedding financial technology into agriculture, PASS Trust is aligning with national goals to modernise and commercialise farming, particularly among young Tanzanians.
The digital lending platform comes at a time when agriculture employs over 65% of Tanzania’s population, yet remains underfunded by traditional banks due to perceived risk.
The move also complements government efforts to digitalise public services and boost rural economic development.
Looking ahead, PASS Trust plans to scale the platform across more regions, integrate e-wallets and savings products, and onboard more financial partners. “Our ambition is to build a sustainable, tech-enabled agricultural finance ecosystem – one that reaches the last mile,” said Kaduma.
