NBC credit extension to selected agricultural authorities / corporations in Tanzania: the 1967-1981 experience

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University of Dar es Salaam
Most of the Agricultural Commodity Authorities in, Tanzania are now forced to operate on cash basis because they can't t get(or when they get very little)financial overdrafts while the majority of their customers who are mainly parastatal organisations have very long procedures before they make payments. This is alleged to be one of the bottlenecks to the effective operations of the agricultural commodity activities. At the same time NBC points out that she is forced to refuse/cancel clot of overdraft facilities because most parastatals are either operating at losses or riddled with perpetual/permanent problems which cannot be solved otherwise. This thesis therefore intends to analyse the validity of complaints both from the client and customers. The broad aim is to find out whether the present NBC policy regarding this problem is optimal, consequently the main purpose is to examine the validity of these problems and to try to find out possible solutions for the benefit of NBC, the Crop authorities and the whole nation. More specifically the study aimed to find out whether: (1)NBC has contributed to the implementation of the official policy of socialism and self-reliance in Tanzania or she is putting more emphasis on profitability. (2) NBC could accept a little loss for the sake of boosting the newly established parastatals. (3) Parastatals in question could use the over drafts rnore economically and efficiently to ensure repayments of loans are fairly granted. To verify results statistical non-parametric techniques were used, the University Library and the NBC' s published and unpublished documents were used for the purpose of chapter 1. For specific studies NBC's advances department and data collected from each discussed authority were used. Evidence from the study suggests that there are problems which relate to the economic and efficient use of the overdraft facilities they acquire from the NBC and this has been the principle reason for NBC to be strict in giving additional facilities. The study on the whole seems to imply that the present customer-client relationship is problematic and has adverse consequences to the whole economy and thus needs immediate solution. As such if specific problems will not be solved the NBC, Crop Authorities and the whole nation will continue to suffer. For this reason there is a need for a mult-action of the NBC, Crop Authorities and government to work together against them if at all permanent solution is to be reached.
Available in print form
Agricultural credit, Tanzania, Agriculture, Economic aspects
Mtango, M. J. E (1981) NBC credit extension to selected agricultural authorities / corporations in Tanzania: the 1967-1981 experience, Masters dissertation, University of Dar es Salaam. Available at ( )