TADB Strengthens Operations, Increases Dividend to Government

The Parliamentary Investment Committee (PIC) has praised the Tanzania Agricultural Development Bank (TADB) for strengthening its operations and increasing its dividend to the government from Sh500 million to Sh8.4 billion. This development shows an increase in productivity in the management and utilization of public capital. The committee's chairman, Ojambi Didas Masaburi, made these remarks during a meeting in Dar es Salaam, where members evaluated the bank's mandates, operational structure, and challenges.

Masaburi stated that the committee's role is to ensure that institutions receiving public capital protect and promote the investment, increasing productivity for the benefit of Tanzanians. He noted that TADB has made significant progress compared to 2015 when it was facing difficulties that threatened its continued operations. Despite these challenges, the bank has successfully protected the Sh60 billion capital invested by the government and increased its ability to contribute to government revenue through dividends.

To move closer to small-scale farmers, TADB has opened eight regional offices in Kagera, Ruvuma, and Kigoma to increase access to financial services and empower small-scale farmers to obtain loans to develop their activities. The bank's Board of Directors chairman, Ismail Andulile, stated that the committee has asked the bank to ensure that loans reach small-scale farmers, especially those living in rural areas.

Andulile noted that providing financial services from the grassroots level will help improve agricultural activities, increase production, and boost their economy. TADB's Managing Director, Ng'ambi, received the committee's advice and promised to work on it, identifying the issue of reaching small-scale farmers and citizens in need of agricultural loans as a priority area.

Ng'ambi added that TADB will continue to collaborate with commercial banks, which are important stakeholders in distributing financial services, while strengthening communication and cooperation with them to increase the efficiency of loan disbursement in the country. The bank's efforts aim to improve access to financial services for small-scale farmers and promote agricultural development.

The committee's praise for TADB's improved performance is a testament to the bank's efforts to enhance its operations and increase its contribution to the government's revenue. The bank's strengthened operations and increased dividend to the government demonstrate its potential to drive economic growth and development in Tanzania.

As TADB continues to work towards improving access to financial services for small-scale farmers, it is expected to play a vital role in promoting agricultural development and boosting the economy. The bank's collaboration with commercial banks and its efforts to increase efficiency in loan disbursement will be crucial in achieving its goals.

Key points

• TADB increases dividend to government from Sh500 million to Sh8.4 billion
• Bank opens eight regional offices to increase access to financial services for small-scale farmers
• TADB aims to improve access to financial services for small-scale farmers, especially those living in rural areas