TADB Acting Managing Director David Nghambi presents the bank’s performance report to members of the Parliamentary Public Investments Committee (PIC) and journalists during the committee’s visit to the bank’s headquarters in Dar es Salaam on November 6, 2026.
By Habitat Media Reporter
Dar es Salaam. The Parliamentary Public Investments Committee (PIC) has urged the Tanzania Agricultural Development Bank (TADB) to expand access to affordable financing for smallholder farmers and diversify its sources of capital to reduce reliance on government funding.
The committee said the bank should place greater emphasis on investments that directly improve agricultural productivity and farmers’ livelihoods, including irrigation, agricultural production, processing and value addition.
It also called on TADB to explore alternative financing opportunities in line with the country’s long-term development ambitions under Vision 2050.
The recommendations were made on November 6, 2026, when PIC members visited the bank’s headquarters in Dar es Salaam to assess its performance, achievements and challenges since its establishment more than a decade ago.
Speaking after receiving a presentation on the bank’s performance, PIC chairman Ojambi Massaburi, who is also the Kivule MP, said TADB needed to align its capital mobilisation strategy with the national development agenda by exploring financing opportunities beyond government allocations.
He said although the bank’s ambition to secure at least Sh800 billion from the government was understandable, diversifying its funding sources would strengthen its capacity to finance agricultural development.
“I have seen that you want at least Sh800 billion from the government. That is fine, but I urge you to align your plans with Vision 2050, which requires us to explore other sources of revenue,” he said.
The committee’s advice comes as TADB continues to register growth in its capital base, revenues and resource mobilisation, reflecting its expanding capacity to support investment in the agricultural sector.
Presenting the bank’s performance report, Acting Managing Director David Nghambi said shareholders’ funds had increased to Sh553.22 billion by September 2026, up from Sh76.7 billion in 2020.
He said the bank had mobilised Sh1.41 trillion by September 2026 and was targeting an additional Sh759 billion between 2025 and 2027.
Nghambi also reported that the bank’s revenue had more than tripled to Sh106.4 billion from Sh28.1 billion, while operating expenses had increased to Sh51.2 billion from Sh12.8 billion over the period under review.
The presentation further showed that more than half of the bank’s lending had gone towards crop purchases, followed by investments in agro-processing industries, agricultural inputs, warehouses, cold storage facilities and other areas of the agricultural value chain.
While acknowledging the bank’s growth, committee members challenged TADB to ensure that its expanding financial capacity translated into tangible benefits for smallholder farmers, who remain central to the country’s agricultural transformation.
PIC member and Special Seats MP for Singida, Martha Nehemia Gwau, said the bank’s success should not be measured solely by growth in capital and financial performance, but also by its contribution to improving people’s livelihoods.
She observed that the bank appeared to be concentrating heavily on financing crop purchases, while more attention was needed in areas that directly support smallholder farmers.
“Your focus is largely on crop purchases rather than the value chain that targets smallholder farmers,” she said.
She urged TADB to increase financing for irrigation and other agricultural activities that enable small-scale producers to improve productivity and strengthen their participation in the value chain.
Her remarks highlighted the importance of ensuring that the bank’s financial growth translates into wider access to agricultural financing, particularly among farmers who often face difficulties meeting conventional lending requirements.
Magu MP and committee member Boniventura Kiswaga, meanwhile, commended TADB for its progress since its establishment in 2015, noting that its initial capital stood at only Sh60 billion.
He said the bank had made considerable progress compared with its early years, when discussions were being held about whether it should be dissolved or merged with another financial institution.
“Today, the bank is doing well. In the beginning, we were discussing whether to abolish it or merge it with another bank,” he said.
Mlalo MP Rashid Abdallah Shangazi also called on the government to continue supporting TADB financially while encouraging the bank to prioritise strategic crops with significant potential for production, processing and value addition.
He cited oil palm cultivation in the Lake Tanganyika corridor, particularly in Kigoma, Katavi and Tabora regions, as an area requiring greater investment.
He said financing the crop could help strengthen domestic production and reduce Tanzania’s dependence on imported edible oils.
Shangazi also identified cashew nuts, sisal and cotton as strategic crops deserving greater financial support, noting their economic importance and potential contribution to agricultural resilience, including in the face of climate change.
The emphasis on climate-resilient agricultural investments comes as farmers increasingly face production challenges associated with changing weather patterns.
Earlier, TADB identified climate change, inadequate collateral among borrowers and limited capital as some of the major constraints affecting its lending operations.
Responding to the committee’s concerns, TADB Board Chairman Ishmael Kasekwa pledged that the bank would review the recommendations and prepare a comprehensive strategy outlining how it intended to strengthen capital mobilisation and expand financing to smallholder farmers.
He said the board would deliberate on the issues raised and submit a detailed report to the committee.
“We will discuss and submit a comprehensive report on this plan to the committee,” Kasekwa said.