Tanzania unlocks 300 million US dollars in private agriculture financing

The Tanzania Agricultural Development Bank (TADB) mobilized more than 300 million US dollars in private financing for the country's agricultural sector through a credit guarantee scheme.

This initiative aimed to improve access to capital for smallholder farmers and agribusinesses who often struggle to secure loans due to a lack of collateral. The Smallholder Credit Guarantee Scheme (SCGS) provides these guarantees to reduce lending risks for private lenders.

TADB Managing Director Frank Nyabundege stated that the scheme has allowed 22 partner financial institutions to provide credit to more than 680,000 people, including smallholder farmers, women, and young people, over an eight-year period. The bank uses an Integrated Value Chain Financing model to fund activities from production and aggregation to value addition and export markets. TADB also provides technical assistance to partner institutions through a specific curriculum at the Bank of Tanzania Academy.

This training helps lenders understand seasonal production cycles and agricultural complexities. The bank further supports the sector by offering training on climate financing frameworks and technical support to small and medium-sized enterprises. These efforts combine with co-financing arrangements to attract commercial lenders and support climate-resilient agriculture in Tanzania.