Tobago Correspondent
Farmers, fisherfolk and agro-businesses in Tobago will be able to access loans of up to $100,000 under the new TobaGrow Loan initiative, launched yesterday at the Division of Community Development and Social Protection in Scarborough.
The programme is being hailed as an investment in Tobago aimed at helping established entrepreneurs expand their operations and encouraging young people to enter the sector.
TobaGrow, a collaboration between the Agricultural Development Bank (ADB) and the Tobago House of Assembly (THA), allows previously approved borrowers to access a maximum of $100,000 with 10 per cent cash collateral, while first-time borrowers will be able to access up to $50,000 with 20 per cent cash collateral.
Specific borrowers will be granted a six-month moratorium, while flexible repayment options will be available to all, including monthly, quarterly and semi-annual payments, depending on the project’s cash flow.
Loans can be used for the establishment, maintenance, expansion and rehabilitation of operations, as well as equipment repairs, working capital and debt consolidation.
Farook Hosein, chairman of the ADB, said the partnership with the THA was crucial to the advancement of the sector.
He said, “Access to affordable financing can often determine whether a good idea remains a dream or becomes a successful enterprise.”
Hosein believes TobaGrow caters to Tobago’s specific needs and will help businesses—whether established or newly formed—reach their potential and expand their output.
“Whether someone is entering agriculture for the first time, expanding an existing enterprise or returning to the sector, the loan provides an accessible pathway to growth,” Hosein said.
He added that the initiative serves as an entry point for entrepreneurs to enter the formal banking system.
Minister of Agriculture and Fisheries Ravi Ratiram was also present and said he was keen to see Tobago achieve food sovereignty.
He said Prime Minister Kamla Persad-Bissessar had mandated him to reduce the nation’s food import bill, which stands at a staggering $7.3 billion annually.
He said boosting Tobago’s agricultural output was crucial to attaining that goal.
Meanwhile, Wane Clarke, Secretary of Food Security, agreed that access to financing had been a stumbling block for Tobago’s farmers.
The THA has set a goal of doubling the island’s agricultural output from one to two per cent of gross domestic product (GDP) in fiscal 2027.
However, Clarke reminded stakeholders to borrow responsibly and remember that the initiative is a loan and not a grant.
“Pay the people back their money,” he said.
Several farmers in attendance welcomed the initiative, but said their optimism was tempered until the full details were revealed.
Samuel Eastman, PRO of the Argyle Farmers Group, said frustration had driven many farmers out of the sector, adding that the red tape involved in accessing loans had been a deterrent.
He said, “Lewwe see how much the ADB would be able to ease the farmer that he would not be under so much stress and that when he plant he would be able to pay his loan and feed his family, and everything would go okay.
“But if he under stress and he can’t think and he frustrated because he don’t have a document because somebody just give him a spot (to plant), if we can able to work around that, then everybody go be happy afterwards. If nobody happy then everything crash.”
Eastman revealed that praedial larceny remains a challenge for farmers in Tobago.
Ratiram told Guardian Media that significant strides had been made in tackling the scourge, as the unit had been beefed up with additional vehicles. He said the data showed a considerable decline in the crime.
