It is clear that the sector of agricultureagricultural sector is crucial into the economy of Tanzania and it has high potential for a faster and more sustainable growth and development. However, its development is constrained by many varying factors, the main being lack of financefinancial capital, and insufficient infrastructure and property rights. The accessingAccess to credit services provided by financial institutions has been a major concerned byconcern of many stakeholders in the agricultureagricultural sector, and mainly byof smallholder farmers who have no property to use as collateral. Financial institutions have rejectedreject alternatives to traditionally known properties to use astraditional property-based collateral. Consequently, they cannotwill not make medium and large investments. Formal financial institutions fear to extendextending credit to agricultural productiveproduction activities because they claim, claiming that these activities are risky ventures (Simbakalia, 2012). Most of these riskyrisks are manmade and can be eliminated by creating a good environmentsenvironment for sustainable agriculture. forFor example, Lacklack of land use plan has alsoplanning also has some risk, because banks fear to extendextending credit to agricultural activities which later on can be affected by change in use of the land later on.

Also, the productivity of smallholder farms is very low, characterizes agriculture practicecharacterizing agricultural practices in Tanzania, as theirthey're subsistence producer inproducers by nature (URT, 2013a)