DAR ES SALAAM Tanzania (Xinhua) --
The Tanzanian government on Monday injected 94
million U.S. dollars into the country’s Tanzania Agriculture
Development Bank (TADB) to help empower farmers.
The money, a soft
loan from the African Development Bank (AfDB), is aimed at
empowering the bank to have enough capital that will help it
fulfill its main role of financially empowering small scale
farmers and entrepreneurs to access loans and improve
agro-processing, Francis Assenga, TADB Acting Managing Director,
said in Dar es Salaam.
“This money is
testimony to our commitment towards agricultural transformation
because it is going to increase our operations,” he said during
the signing ceremony of the deal.
He said the main
challenge facing the agricultural sector was lack of access to
finance, adding that the money acquired from the AfDB will be
accessed by many farmers across the country, the second largest
economy in the East African region.
Tanzania has been
beneficiary of loans from the AfDB amounting to 284 million
dollars between November and December 2016, out of which 94
million dollars is earmarked for agricultural development.
The loans were in
line with AfDB’s program known as “Feeding Africa, Lighting-up
Africa, Integrating Africa, Improving the African quality of
life and industrializing Africa.”
TADB is a
state-owned development finance institution established to
catalyze delivery of credit facilities for development of
agriculture in the country.
It is also dedicated
to contributing significantly to the development of agriculture
in Tanzania through mobilizing financial resources and
supporting smallholder farmers with low-interest loans.
The bank is
structured to deliver short, medium and long-term lending
through refinancing, wholesale lending, direct lending,
co-financing, syndications, leveraging guarantees and
infrastructure financing to address financing gaps in the value
chains of focus.