The Tanzania Agricultural Development Bank (TADB) and the Zanzibar Economic Empowerment Agency (ZEEA) have signed a Memorandum of Understanding (MoU) aimed at expanding access to finance for agriculture, increasing production and strengthening economic opportunities for farmers and entrepreneurs in Zanzibar.
The agreement, signed on August 24, 2026, in Zanzibar, seeks to link financing more closely with the needs of agricultural value chains, from production and collection to processing, transportation and marketing.
The partnership is expected to support food security, increase the value of locally produced crops and create more reliable markets for local producers.
The signing ceremony at Golden Tulip Hotel, Mbweni, was attended by Zanzibar Minister for Youth, Employment and Empowerment, Shaaban Ali Othman, alongside officials from the Revolutionary Government of Zanzibar, TADB, ZEEA and the Zanzibar Business and Property Registration Agency (BPRA), as well as development partners, private sector representatives, farmers and entrepreneurs.
Speaking at the event, Mr Othman commended TADB and ZEEA for the partnership, saying improved access to finance would be important in promoting youth employment, entrepreneurship, food security and economic empowerment.
Under the agreement, TADB and ZEEA will develop Integrated Value Chain Financing (IVCF) projects targeting priority areas including horticulture, poultry, livestock, spices, rice, sugarcane and the Blue Economy.
The two institutions also plan to develop between three and five agricultural loan products while strengthening ZEEA’s capacity in credit assessment, value-chain analysis, risk management and loan recovery.
Smallholder farmers, women, young people and micro, small and medium-sized enterprises (MSMEs) will receive priority under the initiative.
Eligible borrowers will also be linked to mechanisms designed to reduce lending risks, including the Smallholder Credit Guarantee Scheme (SCGS).
TADB already has Sh15.87bn exposure in Zanzibar
TADB Managing Director Frank Nyabundege said the bank was entering the partnership with an established investment base in Zanzibar, having already extended loans worth Sh15.87 billion to 57 projects.
He said TADB had also approved Sh15 billion for the cloves sector in 2026, alongside Sh5 billion through financial institutions to support continued lending to agriculture, including livestock and fisheries.
“TADB is not coming to Zanzibar to start a new journey from zero. We are building on a foundation of cooperation and investment that has already begun to deliver results,” Mr Nyabundege said.
Mr Nyabundege also challenged the institutions to focus on implementation rather than the signing ceremony itself.
“The real value of this agreement will not be measured by the document we sign today, but by the projects we develop, the financing we mobilise, the businesses we grow, the jobs we create and the people we empower,” he said.
The partnership is also expected to strengthen links between local producers and Zanzibar’s tourism industry by improving the supply of locally produced food and other products to hotels, restaurants and businesses serving tourists.
ZEEA, BPRA target business formalisation
Separately, ZEEA signed an MoU with BPRA to strengthen business formalisation and improve the operating environment for entrepreneurs and traders.
The agreement seeks to expand access to business and property registration services, provide entrepreneurs with information and education, simplify registration procedures and reduce the challenges and costs faced by small businesses seeking to formalise their operations.
The two institutions will also collaborate on joint trade exhibitions designed to help entrepreneurs promote their products and services, build business networks, access new markets and connect with investors and financial institutions.
ZEEA Executive Director Juma Burhan Mohamed said the agreements were an important step in advancing Zanzibar’s economic empowerment agenda by connecting access to capital with agricultural development, business formalisation and value-chain growth.
He said the partnership would create a more integrated support system in which BPRA would help formalise and protect businesses, ZEEA would facilitate access to finance and markets, while TADB would provide agricultural financing expertise and financial opportunities.
“True economic empowerment is about helping citizens produce, grow their businesses, access capital and markets, increase their incomes and ultimately become economically self-reliant,” Mr Mohamed said.
He stressed that the success of the agreements would depend on joint implementation, monitoring and accountability, with measurable outcomes in access to capital, production, value addition, innovation protection, markets and business growth.
Joint committee to oversee implementation
TADB and ZEEA will establish a Joint Coordination Committee (JCC) comprising senior representatives from both institutions to oversee implementation.
The committee will meet at least twice a year to review progress, approve joint plans and address challenges arising during implementation.
TADB also acknowledged the support of the Agence Française de Développement (AFD) through its Technical Assistance programme, which has supported institutional capacity building and efforts to expand development financing in agriculture.
For Zanzibar’s agricultural sector, the focus will now shift from signing the agreements to turning the commitments into accessible financing, stronger value chains, expanded markets and increased incomes for local producers.
