Farmers in the country will now have opportunity to restrain various challenges they have been facing in ensuring the sector remain the main contributor to the economy at both individual and national level.
Chairman of the Board of Directors of JATU PLC, Eng. Dr. Zaipuna Yonah said this recently in Dar es Salaam following the company official register at the Dar es Salaam Stock Exchange (DSE).
Through Jatu market, small scale farmers will now have reliable markets for their crops.The board chair added that farmers in the country will now produce their crops scientifically using modern technologies before and after harvest.
Agriculture is undoubtedly the largest and most important sector of the Tanzanian economy, with the country benefitting from a diverse production base that includes livestock, staple food crops and a variety of cash crops.
The sector’s contribution to GDP has more than tripled in the last 10 years, supported by rising cash crop production, an emerging agro-processing segment and strong domestic demand for processed food.
At the same time, farmers and other sector stakeholders face considerable challenges in modernizing the industry to increase yields, exports and value-added processing. Slowing export revenues; land acquisition hurdles; and smallholder farmers struggling to access economically viable technology, adequate storage facilities, markets and credit have affected private investment.
JATU posted its 2,164,349 shares worth Sh. 1.082 billion at the Dar es Salaam stock market. Price per share was Sh. 420. The main objectives of listing its shares at the DSE were to give opportunities to shareholders to sell parts of their shares and enable other investors to buy.
JATU PLC Chief Executive Officer, Peter Isare said that the shares listed at the DSE are just minimum of 5 percent of their capital. JATU has so far connected a total of 5000 small scale farmers in Njombe, Morogoro, Tanga and Manyara regions.
Isare said that JATU PLC is owned by youths, women and other normal income earners who have never secured formal employment after university education. The aim of establishing the company was creating job among youths.
The company main agenda was agro-business and develop industries that use raw materials produced by farms owned and developed by JATU PLC. The company is the first agricultural based to be listed on the Dar es Salaam Stock Exchange, (DSE).
“Following our presence at the DSE, we expect to implement business plan that involves more huge projects with members of the communities where we expect to change lives of thousands of Tanzanians” said JATU CEO.
Capital Market and Securities Authority (CMSA), Chief Executive Officer Nicodemus Mkama said that JATU PLC is the 28th company to be registered at the Stock Market. He said the act gives opportunity to Tanzanians inside and outside the country to invest in agriculture sector which employs more that 70 percent of Tanzanians.