The Parliamentary Standing Committee on Public Investments (PIC) has praised the Tanzania Agricultural Development Bank (TADB) for improving its operations and increasing dividends paid to the government. The bank's dividends rose from 500m/- to 8.4bn/-, reflecting better management and utilisation of public capital. PIC Chairperson, Ojambi Didas Masaburi, commended the bank during a meeting in Dar es Salaam, where members assessed the bank's mandate, structure, and challenges.
Masaburi stated that the committee ensures institutions receiving public capital protect and grow investments while generating greater returns for Tanzanians. He noted that TADB had made significant progress since 2015, when it faced serious challenges threatening its operations. Despite these challenges, the bank safeguarded the 60bn/- capital invested by the government and strengthened its capacity to contribute to government revenue through dividend payments.
To bring financial services closer to farmers, TADB has opened eight zonal offices in Kagera, Ruvuma, and Kigoma regions. This move aims to improve access to financial services and enable smallholder farmers to secure loans for expanding their agricultural activities. The bank's efforts focus on supporting smallholder farmers, particularly those living in rural areas, to improve agricultural activities and increase production.
TADB Board Chairman, Ismail Andulile, stated that the committee directed the bank to ensure loans reach smallholder farmers, particularly those in rural areas. Extending financial services to farmers at the grassroots level would help improve agricultural activities, increase production, and strengthen their economic well-being. The bank's goal is to support farmers and contribute to the country's agricultural development.
TADB Managing Director, Ng'ambi, received recommendations from the committee and pledged to implement them. Reaching smallholder farmers and other citizens seeking agricultural loans was among the key priorities discussed. The bank will continue collaborating with commercial banks to extend financial services to farmers while strengthening communication and cooperation with institutions to improve agricultural lending efficiency.
The bank's improved performance is a positive development for Tanzania's agricultural sector. By increasing access to financial services, TADB aims to support smallholder farmers and contribute to the country's economic growth. The bank's efforts to strengthen its operations and increase dividend payments to the government reflect its commitment to efficient management and utilisation of public capital.
The PIC's commendation of TADB highlights the bank's progress in improving its operations and supporting the country's agricultural development. With continued efforts to extend financial services to smallholder farmers and improve agricultural lending efficiency, TADB is poised to make a positive impact on Tanzania's agricultural sector and economy.
Key points
- TADB's dividends to the government increased from 500m/- to 8.4bn/-.
- The bank opened eight zonal offices to improve access to financial services for smallholder farmers.
- TADB aims to support smallholder farmers and contribute to Tanzania's agricultural development.
