By Habitat Media Reporter
Dar es Salaam. Smallholder farmers and small businesses in Tanzania’s agriculture, livestock and fisheries sectors are set to gain greater access to affordable financing following the launch of a Sh50 billion facility by the Tanzania Agricultural Development Bank (TADB) and the East African Development Bank (EADB).
The financing facility, backed by a Sh50 billion loan from EADB to TADB, is intended to finance activities across the three sectors, including production, processing, value addition, storage, transportation and market access.
The initiative seeks to address access to capital while supporting investments that can increase production, strengthen value chains and improve the competitiveness of agricultural, livestock and fisheries products.
Under the facility, eligible beneficiaries will have access to affordable loans and flexible financing terms to invest in modern inputs and equipment, processing, storage, transportation and other activities in line with the product’s eligibility requirements.
TADB Managing Director Frank Nyabundege said access to affordable finance remained critical to raising productivity, promoting value addition and strengthening the competitiveness of businesses operating in the agriculture, livestock and fisheries sectors.
“This facility is part of TADB’s efforts to expand access to affordable capital for farmers and small businesses, enabling them to increase production and productivity, add value to their products and strengthen their participation in value chains,” he said.
Mr Nyabundege said TADB would ensure the financing reached its intended beneficiaries and was channelled into productive activities aligned with their business cycles and production needs.
“We want these funds to serve as a catalyst for production and value addition,” he said, adding that financing would enable farmers and business owners to invest, increase production, process their products and access markets.
Agriculture takes centre stage
The launch comes against the backdrop of agriculture’s significant contribution to Tanzania’s economy.
EADB Acting Managing Director, Bernard Mono said agriculture remained central to the country’s development, citing a PwC report published in April 2026 which showed that the sector accounted for 19.5 percent of Tanzania’s GDP in the third quarter of 2025 and employed approximately 60 percent of the country’s population.
“Agriculture, as we all know, is not just another sector of the economy, it is the backbone of development,” Mr Mono said.
He said agriculture was a priority under EADB’s 2024–2028 strategic plan, particularly in areas such as agriculture and agro-processing, food security and rural development.
According to Mr Mono, the partnership with TADB would expand access to affordable finance for farmers and agribusinesses, allowing them to increase productivity, create employment opportunities and contribute to food security.
The collaboration will also promote smart agricultural practices, particularly climate-smart agriculture, while encouraging sustainable use of natural resources.
“By supporting innovation, resilience, and sustainability, we aim to help farmers adapt to changing environmental conditions and improve long-term agricultural productivity,” he said.
From raw commodities to value addition
A key focus of the facility is to enable beneficiaries to invest beyond primary production.
The financing will support activities throughout the agriculture, livestock and fisheries value chains, from production to processing, value addition and marketing.
The availability of medium-term financing is expected to allow beneficiaries to undertake investments that require adequate time to generate income and repay their loans.
The facility is also expected to stimulate investment in rural areas, reduce dependence on the sale of raw commodities and increase the value of agricultural, livestock and fisheries products.
For small businesses, the institutions say the financing will strengthen their capacity to participate in competitive markets while creating opportunities for employment and economic growth, particularly in rural communities.
Mr Nyabundege said the facility was aligned with government priorities to develop productive, value-adding and competitive agriculture, livestock and fisheries sectors capable of competing in domestic and international markets.
He said the initiative supported the Tanzania Development Vision 2050, the Fourth Five-Year Development Plan (FYDP IV), covering 2026/27–2030/31, and the Tanzania Agricultural Master Plan 2050.
These frameworks place emphasis on increasing productivity, promoting value addition, attracting investment and strengthening competitiveness across productive sectors.
“By facilitating access to finance, we are creating transformation opportunities for farmers and small businesses from selling raw products to adding value, and from small-scale activities to more productive and competitive businesses,” he said.
EADB, TADB deepen partnership
Mr Mono said the agreement brought together TADB’s more than 10 years of experience in agricultural financing and EADB’s nearly six decades of regional development financing experience.
He said the combination positioned the two institutions to support rural farmers and agricultural communities in Tanzania.
The partnership, he said, was rooted in a shared commitment to sustainable and inclusive socio-economic development within farming communities.
EADB, through its Tanzania Country Office, has been working with stakeholders to identify investment opportunities and support projects contributing to sustainable development, Mr Mono said.
He added that the partnership would allow the regional development finance institution to continue supporting Tanzania’s economic transformation.
Mr Nyabundege thanked EADB and the government teams involved in preparing the facility, reaffirming TADB’s commitment to ensuring the financing was implemented effectively and delivered tangible outcomes to intended beneficiaries.
The launch was attended by EADB Country Manager Stephen Wambura, EADB officials, TADB management and staff, guests and members of the media.