Dodoma. The Tanzania Agricultural Development Bank (TADB) has disbursed loans worth Sh1.55 trillion to 862 projects as it steps up financing for agriculture, livestock and fisheries across the country.
The bank’s chief executive officer, Frank Nyabundege, said the financing had benefited more than 2.6 million Tanzanians directly across all 31 regions of the country, with Sh1.32 trillion, equivalent to 84 percent of the total, being disbursed during the sixth-phase government.
Mr Nyabundege made the remarks during the closing ceremony of the 2026 Nanenane agricultural exhibitions, where he highlighted the bank’s contribution to the government’s efforts to transform agriculture from subsistence farming into a more productive and commercially oriented sector.
He said the financing had supported a range of investments, including irrigation infrastructure, warehouses, storage facilities and agro-processing industries, helping farmers and other actors in the agricultural value chain increase production and add value to their products.
“TADB has continued to put into practice the government’s commitment to making agriculture an engine of economic development,” Nyabundege said.
The bank has allocated Sh611.8 billion to food crops, while strategic value chains, including edible oils, coffee, cashew nuts, sugar and cotton, have received a combined Sh884.24 billion.
Nyabundege said the investments were intended to support the transformation of agricultural produce into value-added products, creating jobs and increasing household incomes.
Credit access for smallholder farmers
TADB has also expanded lending to smallholder farmers through its credit guarantee scheme.
According to Mr Nyabundege, the bank has used Sh108 billion in guarantee capital to facilitate Sh692 billion in loans through 21 financial institutions, benefiting more than 657,000 people.
This means every Sh1 committed as a guarantee has helped unlock more than Sh6 in financing for farmers and agricultural entrepreneurs, he said.
The mechanism is aimed at addressing one of the long-standing challenges facing smallholder farmers and agricultural businesses—limited access to affordable credit.
Mr Nyabundege said the bank would continue using lending and credit guarantees to increase private-sector investment in agriculture and accelerate the transition towards commercial farming, technology adoption and value addition.
Government capital injection
The TADB chief executive attributed the bank’s expanded lending capacity partly to increased government investment in the institution.
He said the government had increased TADB’s capital from Sh60 billion to Sh452 billion, with Sh392 billion, or 86.7 per cent, injected during the current administration.
The increased capital, he said, had strengthened the bank’s ability to finance agricultural investments and support government priorities around food security, employment creation and economic growth.
The bank’s performance has also received international recognition, with Mr Nyabundege announcing that TADB had been awarded the Global Brand Award 2026 for being recognised for its agricultural financial solutions in Tanzania.
He, however, said the bank considered the impact of its financing on ordinary Tanzanians more important than awards.
“The real measure of our success is not awards, but the positive outcomes for citizens,” he said, citing increased food production, reduced post-harvest losses, agro-processing, job creation, expanded markets and improved household incomes.
Private sector role
Looking ahead, Mr Nyabundege said TADB was preparing to play a bigger role in supporting the implementation of the Tanzania Development Vision 2050, which places significant responsibility on the private sector to drive development.
He said the bank would continue providing financing and credit guarantees to encourage private investment and speed up agricultural transformation.
The move comes as Tanzania seeks to increase productivity and competitiveness across the agricultural sector while strengthening food security and creating employment opportunities.
Mr Nyabundege pledged that TADB would remain a strategic partner of the government in building a competitive and productive agricultural sector capable of making a greater contribution to national economic growth.