DODOMA, December 11, 2023 – The African Development Bank [AfDB] has approved a US$ 66 million loan to the government of Tanzania for additional equity in Tanzania Agricultural Development Bank [TADB].
According to officials, the financing will enable TADB to strengthen its capital and enhance the structure and effectiveness of financial and non-financial services it offers to entrepreneurs in the agriculture and related value chains.
The Tanzania Agricultural Development Bank Phase II project will also receive US$ 950,000 in technical assistance from the Affirmative Finance Action for Women in Africa [AFAWA] initiative to boost access to finance and related support to women in identified agriculture value chains.
Additional technical assistance of US $250,000 will come from the Africa Adaptation Acceleration Program [AAAP], a joint initiative of the African Development Bank and the Global Centre on Adaptation [GCA]. This will go toward climate risk management support and to assist TADB in assessing the climate risk profile of its portfolio and developing the tools, methodologies, and capacity to mainstream climate resilient lending practices.
The project, approved on December 5, 2023, is expected to enhance inclusive access to finance in the agriculture sector, improve yields and productivity and raise household income and create jobs, contributing to broad-based economic growth in Tanzania.
The Bank Group’s Acting Director for Financial Sector Development, Ahmed Rashad Attout said, “We are excited to finalize this second intervention with the Government of Tanzania to support the consolidation and expansion of TABD’s operations and in supporting the transformation of Tanzania’s agricultural sector.”
Bank Group Director General for East Africa, Nnenna Nwabufo, added, “through this intervention, the African Development Bank reiterates its commitment to support efficiencies and competitiveness of agricultural enterprises, expansion of agricultural value chains and bolster the financing of the agriculture sector, with enhanced support to women entrepreneurs in this sector.”
The Tanzania Agricultural Development Bank Limited is a state-owned development finance institution established under the Companies Act no. 2 of 2002 and a key stakeholder in the development and envisaged revolution of the agricultural sector.
The Bank’s key role is to be a catalyst for delivery of credit facilities for the development of agriculture in Tanzania. Its establishment is among the key initiatives and national goals enshrined in the Vision 2025 to achieve food self-sufficiency and food security, economic development, and poverty reduction.
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