Partnership targets 21,000 farmers, aims to quadruple yields and position Tanzania as regional soybean hub
By Elizabeth Shumbusho, Kilimokwanza Reporter
Dar es Salaam, October 23, 2025 — In what stakeholders are calling a watershed moment for Tanzanian agriculture, the Royal Norwegian Embassy and PASS Trust formally signed a three-year partnership agreement that could revolutionise the country’s soybean value chain and transform the livelihoods of more than 21,000 farming families.
The signing ceremony at PASS Trust headquarters brought together development partners, financial institutions, and agricultural leaders to witness the formalization of a $4.8 million commodity compact financing initiative—combining a $2.4 million Norwegian grant with an equivalent PASS Trust guarantee mechanism to unlock commercial lending for smallholder farmers.
“This is more than just a funding agreement,” declared Mr. Yohane Kaduma, Managing Director of PASS Trust, as he and Mr. Kjetil Schie, Minister Counsellor and Deputy Head of Mission at the Royal Norwegian Embassy, put pen to paper. “This symbolizes a shared vision for inclusive, climate-resilient, market-driven agricultural growth.”
A Personal Milestone, A National Opportunity
For Mr. Kaduma, the moment carried particular significance. “This is the first grant I have been involved in from idea to signing,” he shared, his voice resonating with pride. The timing was equally symbolic—the signing coincided with PASS Trust’s 25th anniversary, marking a quarter-century of de-risking Tanzania’s agriculture sector.
Over those 25 years, PASS Trust has reached nearly four million beneficiaries and facilitated over TZS 2 trillion in agricultural loans. Yet this project represents something new: a complete value chain intervention from production through processing to market linkage.
“We chose soybeans because of their enormous untapped potential,” Kaduma explained. “Tanzania still imports much of its soybean-based products—animal feed, cooking oil, processed foods—despite having suitable land, climate, and growing domestic demand.”
The numbers tell a compelling story. Current soybean yields in Ruvuma region, the project’s initial focus area, average just 700 kilograms per hectare, with total annual production of approximately 4,600 metric tonnes. The partnership aims to increase yields to over 3,000 kilograms per hectare—a more than fourfold improvement—and enhance farmer incomes by at least 40%.
Norway’s Six-Decade Commitment Continues
Representing the Royal Norwegian Embassy, Mr. Kjetil Schie emphasized that Norway’s support for Tanzanian agriculture stretches back nearly six decades—a relationship recently commemorated during President Samia Suluhu Hassan’s state visit to Norway.
“Soybeans are more than a crop; they are a pathway to prosperity, resilience, and inclusive growth,” Schie told the gathering. “Norway is proud to co-finance this project and complement PASS Trust’s proven guarantee mechanism. This is not just financial aid; it is an investment in Tanzania’s future—and our shared future.”
Schie drew parallels between Norway’s experience and Tanzania’s opportunity. “In Norway, soybeans are integral to our sustainable aquaculture industry, providing protein for salmon feed. They’re part of our food security strategy, from vegan products to livestock nutrition. Likewise, Tanzania can leverage soybeans to revolutionize its livestock, poultry, and fish-farming sectors, driving a more modern and self-sufficient agricultural economy.”
A Systems Approach: Beyond Production
What distinguishes this initiative from conventional agricultural projects is its comprehensive, systems-based approach. Rather than focusing solely on production, the commodity compact brings together the entire ecosystem needed for sustainable value chain transformation.
Geoffrey Kirenga, Chief Executive Officer of AGCOT (Agricultural Growth Corridors of Tanzania), highlighted the collaborative model: “We are already reaching about 21,000 farmers, with 10,000 of those in Ruvuma. Current investment in the soybean value chain stands at approximately $30 million. This partnership is catalytic—we aim to grow total investment tenfold to $300 million within five years.”
AGCOT’s role extends beyond coordination. Having evolved from SAGCOT (Southern Agricultural Growth Corridor of Tanzania) to now cover four agricultural corridors nationwide, the organization facilitates market linkages, promotes technology adoption, and creates enabling conditions for private sector investment.
Slighton Godfrey Kabelege, representing Movement for Community Development (MCODE), emphasized the grassroots dimension: “We are deeply honored to partner with these organizations to transform farmers’ lives, specifically in the soybean value chain. Our role is ensuring farmers receive the training, support, and services needed to adopt sustainable agricultural practices and improve their livelihoods.”
Climate-Smart, Inclusive Agriculture
The partnership places strong emphasis on environmental sustainability and social inclusion. As a legume, soybeans naturally fix nitrogen in the soil, reducing fertilizer requirements and improving soil health for subsequent crops—making them ideal for climate-smart agricultural systems.
Mr. Schie stressed the environmental imperative: “Modern agriculture must be both productive and responsible. Soybean production must not come at the expense of Tanzania’s forests or natural resources. It should be part of the climate solution, demonstrating that agricultural growth and environmental protection go hand in hand.”
The project specifically targets at least 40% participation by women and youth—demographics often marginalized in agricultural finance. Through PASS Trust’s guarantee mechanism, financial institutions will extend credit to farmers traditionally considered “too risky” for commercial lending.
“We’re not just providing access to inputs and credit,” Kaduma clarified. “We’re building complete financial inclusion—input financing, equipment leasing through PASS Leasing, working capital, and post-harvest financing. We’re creating an ecosystem where farmers can thrive.”
The Catalytic Finance Model
At the heart of the partnership lies an innovative financing structure. Norway’s $2.4 million grant serves as catalytic capital, enabling PASS Trust to establish a guarantee facility that will unlock significantly larger amounts of commercial credit.
For every dollar guaranteed, participating financial institutions typically lend three to four times that amount, multiplying the project’s impact. The total mobilized investment is expected to reach $4.8 million over three years, with potential to attract additional private sector co-investment.
Equity Bank, represented at the ceremony as a key implementing financial institution, will be among the lenders providing credit to soybean farmers under the de-risked guarantee arrangement.
From Ruvuma to National Scale
While the initial focus centers on Ruvuma region—a strategic hub with vast untapped agricultural potential—the vision extends far beyond. The partnership plans to expand into Iringa, Njombe, Mbeya, Songwe, and Rukwa regions, eventually creating a national soybean production corridor.
“We have to think big,” Kirenga emphasized during his remarks. “This project demonstrates what’s possible. Success here will attract other investors, other partners, and create a model replicable across Tanzania and potentially across East Africa.”
The three-year timeline includes ambitious milestones:
- Year 1: Establish guarantee facility, mobilize financial institutions, distribute quality seeds and inputs, train farmers on improved agronomic practices
- Year 2: Scale farmer reach, strengthen market linkages, support value addition and processing capacity
- Year 3: Achieve productivity targets, demonstrate income improvements, document lessons learned, prepare for geographic expansion
A Model for Agricultural Transformation
As the ceremony concluded with the traditional PASS Trust “2025 clap”—a spirited celebration marking the organization’s 25th anniversary—and guests sampled soybean milk, snacks, and products showcasing the crop’s versatility, the atmosphere buzzed with optimism.
Both parties expressed confidence that the soybean commodity compact will serve as a blueprint for future agricultural partnerships in Tanzania.
“This partnership represents our vision—to transform agriculture from subsistence to enterprise,” Kaduma reflected. “Through commodity compact financing, we’re proving that agricultural investment can be de-risked, that smallholders can be bankable, and that development finance and commercial finance can work seamlessly together.”
Mr. Schie concluded with a forward-looking perspective: “Today, we’re not just signing an agreement. We’re investing in Tanzania’s agricultural future, in food security, in rural prosperity, and in the next generation of farmers. Norway looks forward to continuing this partnership—not just for three years, but for the decades to come.”
PROJECT AT A GLANCE
Partnership: Royal Norwegian Embassy & PASS Trust
Funding Structure: $2.4M Norwegian grant + $2.4M PASS Trust guarantee = $4.8M total mobilization
Duration: 2025-2028 (3 years)
Focus Crop: Soybeans
Target Region: Ruvuma (pilot), expanding to Iringa, Njombe, Mbeya, Songwe, Rukwa
Farmers Reached: 21,000+ (minimum 40% women and youth)
Current Yield: 700 kg/hectare
Target Yield: 3,000 kg/hectare (330% increase)
Income Impact: 40%+ increase in farmer household incomes
Current Production: ~4,600 metric tonnes (Ruvuma)
Model: Commodity compact financing with blended public-private capital
Implementing Partners: PASS Trust, AGCOT, MCODE, Equity Bank and other financial institutions
Focus Areas: Climate-smart agriculture, financial inclusion, complete value chain integration