The Tanzania Agricultural Development Bank (TADB) has disbursed loans worth Sh1.55 trillion to 862 projects, highlighting the growing role of development finance in Tanzania’s efforts to transform agriculture from subsistence production into a commercially oriented sector.
TADB Managing Director Mr Frank Nyabundege said the financing had directly benefited more than 2.6 million Tanzanians across all 31 regions, with a substantial share of the lending taking place during the Sixth Phase Government.
Mr Nyabundege made the remarks while delivering his speech at the closing ceremony of the Nanenane 2026 exhibitions, where TADB was the main sponsor.
He said Sh1.32 trillion, equivalent to 84 percent of the bank’s total lending, had been disbursed during the current administration, supporting agriculture, livestock, fisheries and related infrastructure.
The scale of the financing indicates a broader shift in agricultural lending, with credit increasingly supporting not only farm production but also the infrastructure required to make agricultural businesses more productive and competitive.
According to Mr Nyabundege, TADB financing has supported irrigation schemes, warehouses, silos and agro-processing facilities.
Such investments are critical to addressing some of the structural challenges facing farmers, including unreliable water supplies, post-harvest losses and limited value addition.
TADB has invested Sh611.8 billion in food crops, while strategic value chains, including edible oils, coffee, cashews, sugar and cotton, have received Sh884.24 billion.
The figures point to a value-chain approach in which agricultural financing goes beyond production to include processing and market-related infrastructure.
Mr Nyabundege said TADB was also using credit guarantees to address one of the major constraints facing smallholder farmers: limited access to formal financing.
Through a Sh108 billion credit guarantee fund, the bank has enabled 21 financial institutions to provide Sh692 billion in loans to more than 657,000 beneficiaries.
The arrangement allows public resources to reduce lending risks while encouraging financial institutions to extend credit to farmers and agricultural businesses that may otherwise struggle to secure financing.
Mr Nyabundege said every Sh1 committed through the guarantee facility had helped unlock more than Sh6 in agricultural lending.
TADB’s increased lending capacity has also been supported by government capitalisation.
The bank’s capital has risen from Sh60 billion to Sh452 billion, with Sh392 billion, equivalent to 86.7 percent, invested by the government during the Sixth Phase Government.
The increased capital base gives the bank greater capacity to finance projects requiring longer-term funding, particularly those that may not be adequately served by conventional commercial lending.
Mr Nyabundege said TADB had also received the Global Brand Award 2026 in recognition of its financial solutions for Tanzania’s agricultural sector.
He, however, said the bank’s success should ultimately be measured by its impact on citizens rather than awards.
He cited increased food production, reduced post-harvest losses, expansion of agro-processing, job creation, improved market access and higher household incomes as key indicators of the impact of agricultural financing.
Looking ahead, Mr Nyabundege said TADB would continue expanding lending and credit guarantees as Tanzania implements the National Development Vision 2050, which places greater emphasis on private-sector participation in economic transformation.
The approach reflects the growing recognition that public financing alone cannot meet the capital requirements of a modern agricultural economy.
TADB plans to use its lending and guarantee facilities to attract more private investment into commercial farming, agricultural technology, irrigation, storage, processing and value addition.
he strategy could help address a longstanding challenge in Tanzania’s agricultural economy, where increased production does not always translate into sufficient processing capacity, stable markets and higher incomes for producers.
Mr Nyabundege said TADB would continue working as a strategic government partner in building an agricultural sector that is productive, competitive and capable of contributing more significantly to economic growth.
The closing of Nanenane 2026 therefore highlighted the importance of linking farmers and agricultural businesses to capital, infrastructure, technology and markets as Tanzania seeks to make agriculture a stronger engine of jobs, food security and household incomes.
