Powering Tanzania’s Agribusiness: PASS at 25 and the Future of Value Chains

Dar es Salaam – When the Private Agricultural Sector Support Trust (PASS) opened its doors in 2000, few could have imagined the scale of transformation it would spark. Established through a visionary partnership between the Government of Tanzania and the Government of Denmark, PASS has since become one of Africa’s most successful models for de-risking agriculture and turning smallholder farming into a bankable business.

Twenty-five years later, the numbers speak volumes: PASS has reached more than 4.7 million Tanzanians and facilitated lending worth over TZS 2.3 trillion (USD 900 million). Yet beyond the statistics lies a story of persistence, innovation, and belief in the power of farmers to transform an economy.

These insights were highlighted in an exclusive interview with Mwananchi Digital, titled “Powering Tanzania’s Agribusiness and Value Chains” (premiered September 15, 2025), in which PASS Managing Director Johanna Kaduma Johane reflected on the institution’s journey.

“Banking agriculture was once seen as impossible,” Johane told Mwananchi Digital. “But with the right support systems, we’ve shown that farmers are not only creditworthy, they are innovators and entrepreneurs. Agriculture is not charity—it’s good business.”

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From Vision to Reality

When PASS was founded, Tanzanian agriculture was constrained by weak financing, fragmented markets, and subsistence-level yields. Banks viewed smallholder farmers as high-risk clients. Without collateral, most farmers were excluded from formal finance.

PASS introduced a groundbreaking credit guarantee scheme that shifted perceptions. By sharing risk with banks, it encouraged financial institutions to lend to farmers and agribusinesses previously locked out.

“We started by telling banks: ‘trust the farmer, and trust us to stand with you,’” recalls Johane. “That message was radical then, but it worked. Slowly, we created an ecosystem where finance flows to those who need it most.”

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Building Value Chains, Not Just Farms

PASS’s unique contribution has been its focus on value chains rather than individual farms. The organization realized early that farmers thrive when connected to processors, exporters, and input suppliers.

In Dodoma, sunflower farmers now supply oil processors under structured contracts that guarantee markets. In Morogoro, poultry enterprises integrate renewable energy to cut costs and improve efficiency. In the SAGCOT corridor, soybean farmers gained access to certified TOSCI-approved seed, breaking yield barriers and unlocking export potential.

“When PASS steps in, it doesn’t just give you a loan,” explains Raha Alyce, founder of Raha Vegetable Farm, which has grown from a small nursery in Kilosa to a nationally recognized seedling supplier. “It gives you a whole ecosystem—finance, knowledge, and partners who believe in your dream.”

The results ripple outward: processors have reliable raw material supply, banks see consistent loan repayments, and households earn more income.

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Scaling Transformation in Line with National Goals

Agriculture remains Tanzania’s economic backbone, contributing about 28% of GDP and employing nearly 65% of the population. Yet, despite vast arable land, only a quarter is currently cultivated.

The government’s Agriculture Master Plan (AMP 2050), Agenda 10/30, and Vision 2050 are designed to unlock this potential. PASS has become a crucial implementer, ensuring smallholders and SMEs are central to this national transformation.

“PASS is not working in isolation—it is aligned with government vision,” says Dr. Hussein Bashe, Tanzania’s Minister for Agriculture. “They are making sure that the farmer at the village level benefits directly from policies we design in Dodoma.”

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The Next 25 Years: From Billions to Trillions

Despite facilitating TZS 2.3 trillion in lending, PASS leaders say this is only the beginning. With climate change, digital disruption, and youth unemployment reshaping Africa’s future, PASS is positioning itself to lead the next wave of agribusiness innovation.

Johane highlighted three priorities for the next era during the Mwananchi Digital interview:

1. Climate-smart agriculture – Expanding financing for irrigation, drought-resistant seeds, and clean energy.
2. Digital transformation – Using fintech and AI tools to bring affordable finance and extension services to remote farmers.
3. Youth and women inclusion – Making agriculture aspirational and bankable for the next generation.

“Our future is about scaling impact exponentially,” Johane emphasized. “We are moving from billions to trillions—ensuring that agriculture is at the center of Africa’s prosperity story.”

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A Model for Africa

PASS’s model is drawing international attention. Delegations from across Africa—most recently AGRA Malawi and representatives from the Norwegian Embassy—have visited Tanzania to study its success.

Development experts say PASS demonstrates that agricultural finance, long considered too risky, can in fact deliver both profitability and impact.

“The PASS story matters far beyond Tanzania,” notes Dr. Agnes Kalibata, President of AGRA. “It is proof that when you design the right instruments, agriculture is not a burden—it is a driver of inclusive growth.”

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Farmers at the Center

For all its institutional achievements, PASS insists its true legacy lies with farmers themselves.

“Before PASS, I never imagined a bank could trust me,” says Constance Chepkorir, a potato seed farmer in Kenya who learned from Tanzania’s model. “Today, I am not just a farmer—I am a businesswoman who employs others.”

In Tanzania’s villages, this sentiment echoes widely. Farmers once sidelined are now leading entrepreneurs, feeding the nation, and linking to global markets.

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Conclusion: Banking the Future

As PASS marks its 25th anniversary, it symbolizes a broader truth about Africa’s growth. The continent’s prosperity will be written not only in its factories and cities, but also in its fields and value chains.

Tanzania, through PASS, is proving that when agriculture is bankable, it is unstoppable.

And in the words of Johane, speaking to Mwananchi Digital:

“The next African billionaires will not just come from tech—they will come from agriculture. We are planting the seeds today.”