The Bank of Tanzania (BoT) has intervened in a long-running debt dispute involving Chobo Investments Limited and three commercial banks, as efforts intensify to resolve loan repayment complications that have prevented the company from moving forward with its investment project.
The intervention brings together the Ministry of Livestock and Fisheries, Equity Bank, CRDB Bank and Tanzania Agricultural Development Bank (TADB) to find a way out of a dispute involving loans initially worth TZS4.8 billion but which accumulated to TZS10.5 billion.
The meeting, held on October 29, 2026, at the ministry's offices in Mtumba Government City, Dodoma, sought to address disagreements over outstanding loans and collateral arrangements involving the company and the financial institutions.
The ministry was represented by its Director of Production and Marketing, Mr Stephen Michael. Other participants included representatives of BoT, the Tanzania Meat Board, the National Ranching Company and the three banks.
During the discussions, Chobo Investments' director said the company secured a TZS4.8 billion loan from Equity Bank in the 2014/15 financial year but failed to commence production, leaving it unable to generate revenue to service the debt.
The outstanding amount subsequently rose to TZS10.5 billion, largely increasing the financial burden on the company before it could begin operations.
The company later approached BoT seeking relief on part of the accumulated interest, arguing that its failure to start production had undermined its ability to repay the loan.
Following negotiations, Equity Bank agreed to reduce part of the interest, bringing the outstanding debt down to TZS8.5 billion.
In a subsequent arrangement aimed at supporting the project, CRDB and TADB agreed to take over portions of the debt, with TADB committing TZS7.3 billion and CRDB TZS1.2 billion.
However, the proposed settlement encountered another hurdle when the banks sought to begin transferring the funds to Equity Bank.
According to the discussions, Equity Bank indicated that the TZS1.2 billion amount had since accumulated to TZS3.9 billion, raising further questions over the amount payable and complicating efforts to conclude the arrangement.
To move the process forward, BoT directed Chobo Investments to submit a formal letter to Equity Bank through CRDB, confirming its intention to pay the TZS1.2 billion.
The submission is expected to provide a basis for renewed negotiations among the parties to resolve the outstanding differences.
The outcome of the discussions could determine whether the company and the participating financial institutions can reach an agreement that clears the way for the investment to progress.
For Chobo Investments, the immediate challenge remains resolving the accumulated debt and securing a workable financing arrangement after years of failing to commence production despite obtaining substantial bank financing.
The meeting also puts the spotlight on the difficulties that can arise when investment projects fail to become operational after accessing credit, leaving borrowers exposed to rising interest costs and banks facing prolonged debt recovery challenges.