Tree-secured Credits for Rural Development
Zurich, 2025-02-28. farip was honored to be among the top ten finalists at the International Cooperation Forum 2025 on February 27–28 at ETH Zurich, gaining strong recognition from the Swiss Agency for Development and Cooperation (SDC).
“Being invited to the IC Forum gave us the chance to connect with many organizations interested in the TCRD approach. Some even showed interest in future collaboration and funding,” says Ueli Scheuermeier, CEO of farip.
In 2025, farip aims to expand TCRD loans beyond the village of Magunguli, reaching more farmers across the region. The goal: to grow from 10 to 100 farming families benefiting from tree-secured loans!
Some pictures of the IC-Forum 2025..
REGISTRATION FOR BIODIVERSITY CERTIFICATES
Kiyowela Ward, 2025-02-26 – Alongside the registration of tree-secured loans, the organization GRACOMA (Growing Assets Collateral Management) has also become active in the field of biodiversity. The newly formed group Watunza Viumbe Hai (“Caretakers of Nature”) has been working since January to register its members’ natural forests using the GRACOMA method. This time, the registration aims at biodiversity certificates.
Here, farip partner reilo., a Swiss start-up, is playing a key role. reilo. develops solutions to give farmers’ natural forests real economic value.
The image shows GRACOMA forestry expert Ragpar Tweve.
Farmers who register their natural forests receive a non-repayable grant for biodiversity. reilo. organizes these payments through international biodiversity certificates. Additionally, group members will soon be able to access a GRACOMA-secured loan for their biodiverse forests, which consist of native tree species instead of plantation varieties like eucalyptus and pine.
HOW FARMING FAMILIES SECURE MICROLOANS WITH MINIMAL RISK
Magunguli, Tanzania – The farip Foundation has enabled a third round of TCRD* loans for five farming families. This February, each family will grow two acres (approx. 0.8 hectares) of beans. The loans are secured by trees instead of the land on which they grow. If conventional loans fail, the land would go to the banks. This tree-based loan security – a groundbreaking solution – was developed by local villagers, who have already twice successfully tested it.
Positive experiences over the past two years have increased demand for tree-secured loans in Magunguli. However, the farip Foundation, which is once again acting as the “bank,” does not have sufficient funds to transition this successful proof of concept into a growth phase.
The image shows an excerpt from the registration contract dated January 30. Around the forest plot, the names of all neighboring landowners are listed, each of whom also signed the document. The village notary and GRACOMA confirmed and certified the registration.
*TCRD = Tree-Secured Credits for Rural Development. farip will present the loan model at this year’s International Cooperation Forum at ETH Zurich on February 27 and 28.
TREE-SECURED CREDITS ON THE GLOBAL STAGE
Bern, 2025-02-05. While the third round of Tree-Secured Credits for Rural Development (TCRD) is rolling out in Kiyowela Ward, southern Tanzania, the innovative approach is gaining attention in Switzerland. farip presented the TCRD venture to the Swiss Agency for Development and Cooperation (SDC) and made it to the finals of the International Cooperation Forum, among the top 10 projects.
TCRD’s innovation? These innovative microloans—where farip acts as the bank during the current pilot phase—are backed by growing trees rather than the land itself. This is a breakthrough for smallholder farmers. It protects them from losing their land in case of loan default. This breakthrough mechanism has already proven successful for increasing productivity at the village level: “We could produce twice as much with fair loans,” local farmers tell farip.
Join the International Cooperation Forum on February 27–28 at ETH Zurich to hear from experts in politics, science, and international development about advancing global economic opportunities.
Federal Councilor Guy Parmelin will award prizes to the top three initiatives at the #ICForum.
CARETAKERS OF NATURE
Magunguli, 2025-01-30. Until now, farmers have planted non-native pine and eucalyptus trees, similar to timber plantations, to earn money from selling logs. Now, many are discovering the value of natural forests. In Magunguli, a group called Watunza Viumbe Hai (“Caretakers of Nature”) has come together to experiment with biodiverse natural forests. This includes initial efforts to register and assess their natural forests. reilo., a start-up founded by farip partner Rahel Guggenbühl, has developed evaluation methods for forests and tailored certification processes for carbon and biodiversity. Farming families who achieve this registration can look forward to payments for preserving diversity. The assessment is only possible with the knowledge and experience of local farmers. In the picture: “Mushrooms are an important indicator of biodiversity,” says Severina.
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.”
WHAT HAPPENED BEFORE
Read all about how farmers invented TCRD in southern Tanzania..