AfDB approves $60m loan to strengthen Tanzania farm bank

AgricultureFinances

Thursday 5th November 2026

Cultivated field and hills in Manyara, Tanzania, photographed on 24 February 2023; illustrative file photograph — A farm in Manyara, part of Mikuyu Tanzania’s agriculture programme, 24 February 2023. Illustrative file photograph; no TADB borrower relationship is established. Photo: AmyAbroad / Wikimedia Commons, CC BY-SA 4.0. Resized.

By inAfrika Newsroom

The African Development Bank has approved a $60 million loan to Tanzania to strengthen the Tanzania Agricultural Development Bank’s capital and expand agricultural lending.

The board approved the financing on 21 October, AfDB said on 4 November. The sovereign loan will pass through the Ministry of Finance and Treasury Registrar and be invested as equity in TADB.

Tanzania will add $60 million by capitalising eligible retained earnings, bringing the initiative to $120 million. That contribution is distinct from the external loan.

AfDB’s project description identifies smallholders, smaller businesses and agricultural value chains as intended beneficiaries. TADB would lend directly and through partner financial institutions, with more capacity for longer repayment periods.

By 2030, TADB aims for women-owned enterprises to account for 30% of its portfolio and youth-led businesses for 20%. Climate-smart agricultural loans are targeted to reach 12%, compared with 3% in 2025, including irrigation, renewable energy and storage. These are programme targets.

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