Tanzania
Agricultural Development Bank Managing Director Frank Nyabundege.
Photo: Courtesy
By Adonis Byemelwa
The Tanzania Agricultural Development
Bank (TADB) has secured second place among Development Finance Institutions
(DFIs) within the Southern African Development Community (SADC). This
achievement was announced at the SADC-DFI sub-committee meeting on June 28,
2024, held at the Savoy Seychelles Resort in Mahe, Seychelles.
The meeting concluded the 13th Review
and Rating of African Development Finance Institutions, including a
comprehensive evaluation of 34 institutions across Africa, 13 of which are
members of the SADC DFI network.
The recognition came after TADB
participated in the Prudential Standard Guidelines and Rating System (PSGRS)
assessment for banks and DFIs in Africa for 2022. This accolade acknowledges
TADB's contribution to good governance, financial ethics, and operational
excellence among African DFIs. TADB achieved a score of 91%, placing it second
to Gapi-Sociedade de Investments from Mozambique, which scored 92% among SADC
DFIs.
Key participants included the
Development Bank of Angola, Botswana Savings Bank, Namibia Development Bank,
Seychelles Development Bank, Southern Africa Development Bank, South Africa
Industrial Development Corporation, Eswatini Development Finance Corporation,
Malawi Transport Development Fund, Zimbabwe Infrastructure Development Bank,
Zimbabwe Small and Medium Enterprises Development Corporation, and TIB
Development Bank (Tanzania).
The PSGRS assessment, organized by the
Association of African Development Finance Institutions (AADFI) in
collaboration with the African Development Bank (ADB), involves meticulous
self-evaluation followed by external verification before submission to the
AADFI Secretariat for independent assessment.
The evaluation not only identifies
institutional strengths and areas for improvement but also serves as a
benchmark for international credit standards and enhances access to capital
markets.
Expressing his satisfaction with
TADB's ranking, Managing Director Frank Nyabundege highlighted that good
governance, strategic financial management, and targeted financial support from
the government to increase agricultural sector lending were crucial pillars
contributing to TADB's success.
He stated, "We are grateful to the sixth
phase government under the leadership of H.E. President Samia Suluhu Hassan.
TADB remains committed to fulfilling its core mission of transforming
agriculture from subsistence to commercial farming and contributing to food
security and sufficiency in Tanzania."
Nyabundege's remarks underscore the
importance of robust institutional frameworks and strategic oversight in
achieving TADB's objectives. Good governance within TADB ensures that
operations are conducted transparently and efficiently, fostering trust and
confidence among stakeholders, including farmers, investors, and government
entities. This governance framework is vital for maintaining accountability and
ensuring that resources are allocated effectively to support the agricultural
sector.
Strategic financial management within
TADB involves prudent planning and utilization of financial resources to
maximize impact.
By implementing sound financial practices,
TADB can optimize its lending operations, provide more tailored financial
products, and better support agricultural projects that have the potential to
drive significant economic growth.
This approach not only enhances the bank's
sustainability but also ensures that funds are channeled into initiatives that
yield the highest returns in terms of productivity and profitability.
The targeted financial support from
the government has been instrumental in scaling up TADB's capacity to lend to
the agricultural sector. This backing enables TADB to offer more competitive
loan terms and reach a broader base of farmers and agribusinesses.
By prioritizing investments in
agriculture, the government signals its commitment to developing the sector,
which is crucial for national food security and economic diversification.
This synergy between TADB and government
initiatives creates a conducive environment for agricultural transformation,
ultimately benefiting the Tanzanian economy and improving the livelihoods of
those involved in agriculture.