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Trade Finance

TRADE FINANCE

CREDIT FOR PROCUREMENT AND DISTRIBUTION OF AGRICULTURAL INPUTS

This facility is available to agricultural inputs importers and distributors. It is a deliberate move by Exim Bank to fill the vacuum that has been left by co-operative societies in some areas growing cash crops.

International Affiliates.

Exim enjoys a line of credit with HSBC Equator Bank and has recently entered into a relationship with the International Finance Corporation (IFC), “the commercial arm of the World Bank” and PROPARCO
“a subsidiary of Agency Francaise de Development (AFD)”. Exim Bank also enjoys corresponence relationships with a number of other major International Banking Institutions including Bankers Trust USA, Citi Bank USA, Deutsche Bank AG London, HSBC Bank USA.

TRADE FINANCE

Exim Bank is an active participant in financing procurement, processing and packing of various export crops, especially coffee, cashews and cotton as well as non-traditional crops such as sesame and pulses. The bank also finances procurement and distribution of fertilizers and other agricultural inputs to ensure growth and sustainability of such crops.

Our loans to exporters to facilitate their activities are of two kinds:
.Security based
.Commodity based

SECURITY BASED:This is the normal offering of credit by way of overdrafts backed by collateral.
COMMODITY BASED:Under this facility, the goods form the security for lending. This facility can be availed by customers for procurement of cash crops from farmers for export only. For those who own processing plants, this facility enables them to procure, process and finally export the crops

AGRICULTURE INPUTS FUND

In the year 2003, the government of Tanzania accredit Exim Bank with the Agriculture Inputs Fund following the banks primary efforts of developing the agricultural sector in the country through loan financing. The Agricultural Inputs Fund amounting to T. Shilling 2.8bn has been offered to the Bank as of 26th July 2003. Accordingly, the bank has been giving the loans to the farmers through their Primary Associations, SACCOs, and also individual farmers.