Tanzania’s Initiatives On Financial Investments In The Country’s Agriculture Sector Is Now Fetching Fruitful Results 

EFFORTS by the Government of Tanzania to invest heavily in the agriculture sector, with an eye to boosting the country’s economy, has finally starting to see the light of the day.

Through the establishment of the Tanzania Agricultural Development Bank (TADB), the Government has been injecting billions of shillings into the Bank to facilitate the provision of capital loans to farmers across the country, including the small- scale ones.

These concerted efforts, which have received lucrative support from international development partners have assisted Tanzania in elevating its agriculture sector to new heights of success.

From losing its shine and sheen, the sector is currently witnessing the widespread adoption of cloud- connected farming technologies, recommended agricultural inputs, as well as improved agronomic practices.

The Bank, TADB, has already dished- out over 5.8 trillion Tanzanian shillings in capital loans to crop growers, enabling the sector to boost food production and improve food security in the country, which is mapped in the eastern part of the African continent.

TADB Managing Director Mr Frank Nyabundege attributed the Bank’s success to President Samia Suluhu Hassan’s patriotic zeal and commitment to strentherning Tanzania’s agriculture sector.

He said the Tanzanian Government has been seriously injecting hundreds of billions of shillings into the state-owned Bank with an eye to expanding agricultural financing and improving food security, especially since President Samia assumed office.

“The Bank has received a total of 392 billion Tanzanian shillings in capital from President Samia Suluhu Hassan’s administration since she took office, increasing the lender’s ability to finance farmers and agribusinesses,” he expressed.

He informed that the Bank commenced operations with a total capital of 60 billion shillings.

However, through President Samia’s economic diplomacy, he said, the Bank’s operating capital has expanded to an impressive level.

“Through President Samia, the country managed to obtain over 500 billion shillings in external borrowing from development partners and donors, including France’s Agence Française de Développement (AFD), the African Development Bank, IFAD, JICA and the Gates Foundation,”Nyabundege detailed.

Moreover, he said AFD alone had provided about 80 million euros ($87 million) in financing in 2022.

He said the Bank had rolled out loans worth approximately 1.2 trillion shillings over the last decade, with nearly 89 percent released during the current administration.

He also saluted a one- trillion- shilling central bank stimulus package and subsidized lending rates for helping to expand agricultural credit.

According to Nyabundege, agriculture’s share of total lending in Tanzania rose from 7.7 percent  to 13.2 percent last year.

With these useful financial investments, he informed that the Tanzania’s crop export value had also catapulted from US$2 billion to US$5 billion.

For instance, he briefed, cashew nut production had increased from 210,000 tonnes in 2021 to 750,000 tonnes last year.

Divulging more successes attained by TADB, he said the farmers- tailored financial lending facility had so far managed to reach for a total of 2.6 million beneficiary farmers through direct loans.

However, over 600,000 farmers have benefited through a special lending scheme managed by a total of 19 financial institutions in the country, according to him.