The Tanzania Agricultural Development Bank (TADB) and the East African Development Bank (EADB) have launched a TZS 50 billion financing facility to support smallholder farmers and small businesses in Tanzania. The facility was launched on 16 September 2026 in Dar es Salaam and is backed by a TZS 50 billion loan from EADB to TADB. This initiative aims to stimulate investment, increase productivity, and promote value addition across agricultural production, processing, and trade.
The financing facility will provide eligible beneficiaries with access to affordable loans and flexible financing terms to support investments in production, modern inputs and equipment, processing, value addition, storage, transportation, and market access. The TADB and EADB expect the facility to increase production and productivity, strengthen value chains, and improve competitiveness, while creating employment opportunities, particularly in rural communities.
The Managing Director of TADB, Frank Nyabundege, and the Acting Director General of EADB, Benard Mono, launched the facility jointly as part of the two institutions' broader collaboration to channel development finance towards productive sectors. Nyabundege emphasized that access to affordable finance remains a critical catalyst for increasing productivity, promoting value addition, and strengthening the competitiveness of businesses in the agriculture, livestock, and fisheries sectors.
Nyabundege highlighted that the 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 added that TADB would ensure the financing reaches its intended beneficiaries and is directed towards productive activities aligned with their business cycles and production needs.
Mono noted that the partnership reflects EADB's commitment to expanding access to development finance and directing capital towards sectors with strong potential to drive economic growth and improve livelihoods. He stated that this partnership channels financial resources to areas with significant potential to drive economic growth, create employment, and improve people's livelihoods, while opening up greater opportunities for small businesses to participate in the agriculture, livestock, and fisheries value chains.
The medium-term structure of the financing will allow beneficiaries to undertake investments that require adequate time to generate income and repay their loans. Nyabundege also noted that the facility is aligned with the government's priorities to develop productive, value-adding, and competitive agriculture, livestock, and fisheries sectors capable of competing in domestic and international markets.
The TADB has a significant track record of supporting Tanzania's agricultural sector, having extended loans worth TZS 1.55 trillion to 862 projects, directly benefiting more than 2.6 million Tanzanians across all 31 regions of the country. The EADB has also reinforced its development footprint in Tanzania with landmark financing agreements with TIB Development Bank, Tanzania Mortgage Refinance Company Limited, and Azania Bank Plc.
Key points
- The TADB and EADB have launched a TZS 50 billion financing facility to support smallholder farmers and small businesses in Tanzania's agriculture, livestock, and fisheries sectors.
- The facility aims to stimulate investment, increase productivity, and promote value addition across agricultural production, processing, and trade.
- The initiative is aligned with the government's priorities to develop productive, value-adding, and competitive agriculture, livestock, and fisheries sectors in Tanzania.
