Overview

PASS Trust is a non-profit organization in Tanzania established in 2000 under the Government of Tanzania with support from Denmark’s Agricultural Sector Programme. It became fully autonomous in 2007 under the Trustees Incorporation Act. Its purpose is to promote access to finance and business development services for small and medium agribusinesses across the country.

Vision and Mission

Vision:
To be the leading and most innovative development institution that supports improved livelihoods within Tanzania’s agribusiness ecosystem.

Mission:
To facilitate access to adaptive financial and business development solutions for agribusiness entrepreneurs, helping them grow sustainably and profitably.

Strategic Objectives

Increase the capacity of small and medium agribusiness entrepreneurs to access financial services.

Strengthen the ability of financial institutions to serve the agricultural sector effectively.

Build stronger linkages between agribusinesses and financial institutions.

Operate efficiently and sustainably to maintain long-term impact.

Core Functions and Services

PASS Trust operates through two main service areas:

1. Business Development Services (BDS)

These services are offered on a cost-sharing or commercial basis and include:

Feasibility studies and business planning

Organizing farmers into groups or cooperatives

Facilitating market linkages and marketing strategies

Providing training, mentoring, and capacity building across value chains

These efforts aim to make agribusinesses more competitive and attractive to lenders and investors.

2. Financial Services / Credit Guarantees

PASS provides partial credit guarantees to partner banks, helping agribusinesses that lack sufficient collateral.
The guarantee typically covers 20% to 60% of the loan value, and in special cases (particularly for women-led enterprises) up to 80%.

PASS works with commercial banks and financial institutions to appraise loan proposals, mitigate risks, and enable more affordable lending to agricultural entrepreneurs.

Beneficiaries

PASS Trust supports a wide range of beneficiaries, including:

Individual farmers and agripreneurs

Farmer groups, unions, and cooperatives

SACCOS and community banks

Small and medium agribusiness enterprises

Companies involved in agriculture, livestock, fisheries, agro-processing, and related sectors

Applications are open to all qualified agribusinesses except those involved in tobacco-related ventures.

Application Process

Submit an application form (online, through a PASS office, or via a partner bank).

Pay a small application fee.

Undergo pre-evaluation and possible site visits by PASS officers.

Prepare or refine a business plan as needed.

Receive appraisal and review by both PASS and the partner bank.

Upon approval, the loan is disbursed through the bank with PASS’s partial guarantee in place.

Achievements and Impact

Over the years, PASS has had a strong national impact in promoting agricultural finance and entrepreneurship:

More than 36,000 projects have been supported through its guarantee schemes.

Over 1 million agribusiness entrepreneurs have benefited from its services, with nearly half being women.

The total loan portfolio guaranteed exceeds hundreds of billions of Tanzanian shillings.

It supports diverse sectors including crop farming, livestock, fisheries, beekeeping, agro-processing, mechanization, and irrigation infrastructure.

PASS has also launched Agribusiness Innovation Centres (AICs) to incubate youth-led agribusinesses.

The organization is increasingly adopting digital systems to streamline applications and guarantee processes.

Strengths

Unique positioning as a bridge between agribusinesses and financial institutions.

Proven track record of stimulating lending in the agricultural sector.

Strong focus on both technical and financial empowerment.

Inclusive programs supporting women and youth entrepreneurs.

Continuous digital transformation and innovation.

Challenges

Agricultural loan defaults due to climate risks and market fluctuations.

Maintaining financial sustainability of the guarantee model.

Need for greater internal capacity to manage a growing client base.

Strengthening data systems for monitoring and evaluation.

Adapting rapidly to new financial technologies and evolving market conditions.