TANZANIA – The African Development Bank Group’s Board of Directors has approved a US$66 million loan to boost the equity of the Tanzania Agricultural Development Bank (TADB) fortifying the agricultural sector in Tanzania.
The decision, made on December 5, 2023, in Abidjan, underscored the commitment to enhancing financial and non-financial services for entrepreneurs in the agricultural sector and related value chains.
The injection of US$66 million into TADB’s equity is expected to significantly bolster its capital structure, allowing the bank to enhance its operational efficiency and expand its services to the agricultural community.
The financing is a part of Phase II of the Agricultural Development Bank of Tanzania project.
Additionally, the Affirmative Finance Action for Women in Africa (AFAWA) initiative will contribute US$950,000 in technical assistance to support women in identified agricultural value chains.
This aims to facilitate increased access to finance and related support for women entrepreneurs.
The Africa Adaptation Acceleration Program (AAAP) will provide an additional US$250,000 in technical assistance; focusing on climate risk management and helping TADB assess and integrate climate-resilient lending practices into its portfolio.
In addition, the support from the African Development Bank Group is anticipated to have a positive impact on inclusive access to finance within the agriculture sector.
By improving yields and productivity, increasing household incomes, and creating jobs, the initiative aims to contribute to widespread economic growth in Tanzania.
Ahmed Rashad Attout, Director of the Bank Group Financial Sector Development Department, expressed delight in the collaboration, emphasizing its role in supporting the consolidation and expansion of TADB’s operations.
He highlighted the importance of transforming the Tanzanian agricultural sector, a sentiment echoed by Nnenna Nwabufo, Managing Director for East Africa of the African Development Bank Group.
Established under the Companies Act No. 2 of 2002, the Tanzania Agricultural Development Bank Limited plays a pivotal role as a public development finance institution.
Its primary objective is to act as a catalyst for providing credit facilities for agricultural development in Tanzania.
The creation of TADB aligns with the national objectives outlined in Vision 2025, aiming to achieve food self-sufficiency and security, foster economic development, and reduce poverty.
The financial support, coupled with technical assistance from AFAWA and AAAP, is poised to make significant strides in advancing financial inclusion, increasing productivity, and fostering sustainable development in the agricultural sector.
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