At least 1.6 million farmers have secured Sh518 billion TADB loans since 2015

TADB analysis (2016-2022) shows that Sh188.2 billion was disbursed for agriculture project financing, Sh128.1 billion for crop procurement, and Sh122.3 billion for agri-processing.

Another Sh41 billion was disbursed for input procurement, Sh15.2 billion for the construction of irrigation infrastructure, Sh9.7 billion for buying farm implements, Sh7.7 billion for building warehouses, and Sh3.7 billion for cattle and fish farming.

TADB managing director Frank Nyabundege made the revelation at the bank’s meeting with editors from different media organisations.

The meeting aimed at increasing editors’ understanding of the bank’s functions under the directives of the Treasury Register (TR), Mr Nehemia Mchechu.

During the meeting, Mr Nyabundege said that despite recorded achievements, a lot has to be done to benefit the over 65 Tanzanians engaged in agriculture.

“Beneficiaries could be considered a drop of water in the ocean, requiring more efforts to benefit more farmers countrywide,” he said.

He said the amount loaned to farmers increased from Sh110 billion disbursed before 2021 to Sh317 billion on June 30, 2023.

According to him, the political will that has been shown by the sixth phase government has increased the amount of loaned funds to Sh152 billion and Sh262 billion in December 2021 and December 2022, respectively.

Furthermore, he said TADB forecasts a further increase to Sh370 billion by December 2023.

“TADB has been operating at Sh60 billion in capital since its inception in 2015, but President Samia Suluhu Hassan provided Sh208 billion in December 2021, fulfilling her commitment to strengthening the bank’s financial capacity she made during her maiden speech in Parliament,” he said.

“This is a big transaction to be provided by the government to an institution through a single transaction in the country’s history,” he added.

According to him, €80 million (Sh212 billion) in April 2022, noting that the government has committed a provision of Sh235.9 billion to TADB and TIB Bank in 2023/24 fiscal year.

He said Finance minister Mwigulu Nchemba told the just concluded Budget Parliament that the government is committed to continuing to provide capital to the bank to reach Sh1 trillion to better serve Tanzanian farmers.

“All this aims at ensuring food sufficiency and the sector’s transformation from subsistence farming to agribusiness,” he said.

Mr Nyabundege said TADB provided Sh209.5 billion to 15 banks for loan issuance to farmers countrywide.

He said Sh34 billion has been set aside for lending to fishermen in the 2023/24 fiscal year to improve cage fish and seaweed farming as well as deep sea fishing.

“TADB has reduced loan interest to below 10 percent from the previous 18 percent. Non-Performing Loans (NPL) remain at 5.5 percent which is slightly above the Bank of Tanzania (BoT) threshold. However, the bank is performing better than competitors in the provision of agricultural loans,” he said.

In his opening remarks, TR Mchechu said the meeting aimed at increasing the organization’s engagement with the media and enabling them to publicise their financial statements.

“Instead of waiting for the Controller and Auditor General (CAG), the public entities are obliged to communicate their performance,” he said.

Tanzania Editors Forum (TEF) member of the central committee Neville Meena challenged the TR office to ensure non-performing entities are assisted to work profitably like privately owned organisations.