Tanzania Agricultural Development Bank urged to boost smallholder funding

The Tanzania Agricultural Development Bank (TADB) has been urged to increase financing for smallholder farmers and explore alternative sources of capital. The Parliamentary Public Investments Committee (PIC) visited TADB's headquarters in Dar es Salaam on November 6, 2026, to assess its performance, achievements, and challenges since its establishment in 2015. Committee chairman Dougras Didas Massaburi said the bank should look beyond government financing and identify sustainable sources of funds to support agriculture.

TADB reports substantial growth in its financial position, including shareholders' funds, resource mobilisation, and revenue. Acting Managing Director David Nghambi said shareholders' funds had increased to Sh553.22 billion by September 2026, from Sh76.7 billion in 2020. The bank had mobilised Sh1.41 trillion by September 2026 and was targeting an additional Sh759 billion between 2025 and 2027. Revenue had also more than tripled to Sh106.4 billion from Sh28.1 billion.

However, committee members questioned whether the bank's expanding financial capacity was translating into adequate support for farmers, particularly those involved in primary production. PIC member Martha Nehemia Gwau said TADB should measure its performance not only through financial growth but also by examining the impact of its lending on farmers. She noted that much of the financing appeared to be directed towards crop purchases, leaving opportunities for greater investment in activities that could help smallholder farmers increase production.

The committee urged TADB to direct more resources towards irrigation, agricultural production, processing, and value addition instead of concentrating largely on financing crop purchases. Gwau said small-scale farmers needed greater support to improve productivity and participate more effectively in agricultural value chains. The committee also called on the bank to reduce its dependence on government funding by exploring alternative sources of capital and strengthening partnerships to support its long-term growth.

TADB's progress since its establishment in 2015 was commended by Magu MP Boniventura Kiswaga, who noted that its initial capital stood at Sh60 billion. He recalled that the bank had faced uncertainty during its early years, when discussions centred on whether it should be dissolved or merged with another financial institution. Kiswaga said the bank was doing well, with significant growth in its financial position.

Mlalo MP Rashid Shangazi urged the Government to maintain financial support for the bank while increasing investment in strategic crops capable of strengthening domestic production and supporting industrial development. He identified oil palm cultivation along the Lake Tanganyika corridor, cashew nuts, sisal, and cotton as crops requiring more financing due to their economic importance and potential to support industrial processing and value addition.

The committee's recommendations align with the country's Vision 2050 ambitions, which require exploring other sources of revenue. Massaburi urged TADB to align its plans with Vision 2050, which aims to strengthen agricultural production and support industrial development. The bank's growth in financial capacity must translate into higher agricultural production and improved livelihoods for smallholder farmers.

Key points

• TADB must increase financing for smallholder farmers and diversify its sources of capital.
• The bank should direct more resources towards irrigation, agricultural production, processing, and value addition.
• TADB's growth in financial capacity must translate into higher agricultural production and improved livelihoods for smallholder farmers.