Tree-secured Credits for Rural Development
Harnessing the Forest’s Potential: Diverse Uses and Development
2024-10-02. Unexpectedly, TCRD has reached a milestone: the Ministry and universities are listening to farmers! After years of experimentation in Tanzania’s southern highlands, TCRD – Tree-secured Credits for Rural Development, a forest-backed credit mechanism, has gained public recognition.
For the first time, key figures from universities, forestry research, WWF, and government agencies came together in a joint forum. The event was spearheaded by Tanzania’s Institute for Development Studies (IDS), a partner of farip and the University of St. Gallen.
During its October journey through Tanzania—joined by Swiss students and a biodiversity start-up— farip gave talks on the potential of private forests. TCRD earned recognition from the Ministry of Natural Resources, represented by Dr. Siima Salome Bakengesa. “Native tree species must be promoted; they are an important part of future forest policy,” she emphasized.
She aims to persuade local banks to recognize trees as collateral and hopes farip will continue sharing its expertise and training additional forest wardens (Watunza Misitu).
Meanwhile, several farming families are requesting another round of farip -funded loans.
TREE-SECURED LOANS HAVE GREAT POTENTIAL
Msowero, 2024-06-01. The University of Dar es Salaam is now also interested in the tree-secured credit mechanism.
Dr. Colman Msoka, the head of the Institute for Development Studies at the university, and his assistant Dr. Patrick Mlinga traveled to Msowero, to prepare their on-site research cycle on biodiversity and smallholder loans. Dr. Msoka commented: “Tree-secured loans have great potential to promote rural development.”