What does rural finance mean?
For people living in rural parts of Tanzania, rural financing could be the difference between success and failure. Tanzania has a population of around 55 million, yet of these 55 million, roughly 27 million people live well below the extreme poverty belt.
Tanzania is a country that relies incredibly heavily on farming and agriculture, yet despite this, rural finance is not where it ideally needs to be. But what does rural finance mean? Well, it can mean a lot of things, but for the purpose of this document, we’ll do our best to explain it as clearly and as coherently as we possibly can.
The importance of farming and agriculture
For individuals living in rural areas, farming and agriculture is literally a lifeline, as without them, they simply would not be able to make a living. For individuals living in rural parts of the world, farming and agriculture provides jobs for more than 86% of these individuals.
Areas of Expertise
That’s right, even though 86% of rural inhabitants work in farming and agriculture, they still live in poverty, and this is something that simply has to change. 2.1 billion individuals worldwide, living in rural locations, somehow manage to survive on the equivalent of less than $2 per day! This is where the importance of farming and agriculture really becomes apparent, because without these things, people would simply have no way of making money whatsoever. This is where rural finance is needed
The importance of rural finance
With populations increasing by the day, and with dietary preferences also shifting, the need for quality farming communities in rural locations has never been greater. By the year 2050, economic forecasters have predicted that worldwide food demands will increase by as much as 70%, which would work out at roughly $80 billion in annual investments.