NFRA To Launch $490million Worth Food Security Bonds To Bolster National Cereal, Grain Storing Capacity -

“We have discussed with banks, and they have supported us in setting up food security bonds that will enable the NFRA to secure the necessary funds,” President Samia Suluhu Hassan

By Senior Reporter VALENTINE OFORO

THE National Food Reserve Agency (NFRA) is finalizing some pending paper works in readiness to launch special food security bonds, aiming to raise at least $490million to help upgrading the national food storing capacity.

The strategic financial maneuver has been designed to empower the National Food Reserve Agency (NFRA) with the means to purchase and store large quantities of grain safely, thus ensuring the nation’s food security.

From the envisaged bonds set for official launch in May, 2025, NFRA is seeking to source funds from both local and international donors, and it will use the money to facelift, and install new cereal storaging towers to the tune of 3 million tons by 2030.

Giving an exclusive interview to this publication, Dr Andrew Komba, the NFRA Chief Executive Officer (CEO) said the Authority has sought use of bonds as a sober way to cheat taking short loans from banks.

Through bonds, he noted, the Agency will stand a positive chance of getting long- term lucrative loans, to be refunded with friendly interest.

Dr Andrew Komba

Dr Komba unveiled that NFRA’s board convened recently, among others to peruse and greenlight the developed strategic plan for enabling NFRA to attain grains storaging capacity of 3 million tons by 2030.

“During the session, the board members perused over, and improved all necessary documents for the bonds, being ahead of sending them to the above authorities for approval,” he said.

The documents, which comprises information memorandum (IM), and project information memorandum (PIM), are being processed through professional guidance from the National Bank of Commerce (NBC) as the leading transaction advisor, Dr Komba added.

He said the papers will then be sent to the Capital markets and securities authority (CMSA) and the ministry of finance, as well as the planning commission for approval.

“The plan is to ensure we expand the NFRA’s cereal storaging capacity to 3 million by 2030, the development which will place the country into a good side of food security,” he insisted.

During the climactic day of the Nane Nane International Agricultural Exhibition in Dodoma last year, President Samia Suluhu Hassan highlighted the government’s collaboration with banks to support this innovative funding approach.

“We have discussed with banks, and they have supported us in setting up food security bonds that will enable the NFRA to secure the necessary funds,” stated President Samia.

With the currently capacity to store a total of 776, 000 tons, NFRA operates 72 purchasing points across eight regions—Dodoma, Dar es Salaam (Kipawa), Njombe (Makambako), Songwe, Rukwa (Sumbawanga), Arusha (Babati), Shinyanga and Songea.

The second tier involves purchasing grain in quantities of 2,000 tonnes or more from large-scale traders, while the third tier includes buying from cooperative societies where farmers aggregate their produce.