Tanzanian Government seeks support from AfDB to strengthen Agric Bank

Nov 15, 2016

This is to improve support for small scale farmers by securing more funds.

Tanzania's Finance and Planning Minister, Dr Philip Mpango has disclosed that the nation is negotiating with African Development Bank for loans to strengthen the capital of Tanzania Agricultural Development Bank (TADB) to own more land and capital for its operation. Mpango made this known while addressing Tanzania's National Assembly about the progress and plans of TADB last Wednesday. He said the negotiations with African Development Bank is focused on 150bn/- for land ownership and 75bn/- running capital, with more farmers set to benefit from the loan facilities. Speaking about expansion plan for TADB, Mpango said the government is working on empowering and building capacity for TADB management and increase its capital before opening up offices in regions and districts. Easing the problem of credit availability and accessibility to farmers across Tanzania, as of October 31, 2016, TADB has issued a total amount of 5bn/- loans with 21,526 small scale farmers benefiting in Iringa, Morogoro and Tanga areas of the country. However, a total amount of 60bn/- is given to TADB by the Tanzania government even though the nation's budget has since 2011/12 been allocating 100bn/- as running capital for the Bank.