The Tanzania Agricultural Development Bank (TADB) and the East African Development Bank (EADB) launched a TZS 50 billion financing facility for smallholder farmers and small businesses on 16 September 2026 in Dar es Salaam.
The facility is backed by a TZS 50 billion loan from EADB to TADB and targets beneficiaries operating across Tanzania’s agriculture, livestock and fisheries value chains.
It is designed to stimulate investment, increase productivity and promote value addition across agricultural production, processing and trade, while also supporting enabling infrastructure that improves market access.
Eligible beneficiaries will gain access to affordable loans and flexible financing terms to support investments in production, modern inputs and equipment, processing, value addition, storage, transportation and market access.
TADB and EADB expect the facility to increase production and productivity, strengthen value chains and improve competitiveness, while creating employment opportunities particularly in rural communities.
The Managing Director of TADB, Frank Nyabundege, and the Acting Director General of EADB, Benard Mono, launched the facility jointly as part of the two institutions’ broader collaboration to channel development finance towards productive sectors.
Nyabundege said access to affordable finance remains a critical catalyst for increasing productivity, promoting value addition and strengthening the competitiveness of businesses in the agriculture, livestock and fisheries sectors.
“This facility is part of TADB’s efforts to expand access to affordable capital for farmers and small businesses, enabling them to increase production and productivity, add value to their products and strengthen their participation in value chains,” Nyabundege said.
He added that TADB would ensure the financing reaches its intended beneficiaries and is directed towards productive activities aligned with their business cycles and production needs.
“We want these funds to serve as a catalyst for production and value addition. When a farmer or business owner obtains financing on terms that enable them to invest, increase production, process their products and access markets, they add value to their operations and contribute to the growth of both their businesses and the national economy,” he said.
Mono said the partnership reflects EADB’s commitment to expanding access to development finance and directing capital towards sectors with strong potential to drive economic growth and improve livelihoods.
“This partnership channels financial resources to areas with significant potential to drive economic growth, create employment and improve people’s livelihoods, while opening up greater opportunities for small businesses to participate in the agriculture, livestock and fisheries value chains,” Mono stated.
The medium-term structure of the financing will allow beneficiaries to undertake investments that require adequate time to generate income and repay their loans.
Nyabundege said the facility is aligned with the government’s priorities to develop productive, value-adding and competitive agriculture, livestock and fisheries sectors capable of competing in domestic and international markets.
He noted that the initiative supports Tanzania’s Development Vision 2050, the Fourth Five-Year Development Plan (FYDP IV, 2026/27 to 2030/31) and the Tanzania Agricultural Master Plan 2050.
“By facilitating access to finance, we are creating transformation opportunities for farmers and small businesses from selling raw products to adding value, and from small-scale activities to more productive and competitive businesses,” he said.
Nyabundege thanked EADB for facilitating the financing and commended the teams from both institutions and the government for their role in preparing and launching the facility.
About TADB and EADB
The Tanzania Agricultural Development Bank (TADB) is a state-owned development finance institution established to deliver short, medium and long-term credit to Tanzania’s agricultural sector.
The bank has extended loans worth TZS 1.55 trillion to 862 projects, directly benefiting more than 2.6 million Tanzanians across all 31 regions of the country.
Of that lending, TZS 611.8 billion has gone into food crops, while strategic value chains including edible oils, coffee, cashews, sugar and cotton have received TZS 884.24 billion.
The East African Development Bank (EADB) was established in 1967 to provide financial and related assistance to enterprises in the East African Co-operation (EAC) Member States which, by their activities, were expected to make a positive contribution to socio-economic development in the region.
In June 2025, EADB reinforced its development footprint in Tanzania, with the announcement of three landmark financing agreements with TIB Development
Bank (TZS 30 billion), Tanzania Mortgage Refinance Company Limited (TMRC) (TZS 30 billion) and Azania Bank Plc (TZS 13.2 billion).
The facilities are designed to strengthen access to finance for SMEs, support housing development and stimulate broader economic growth, reflecting EADB’s continued commitment to advancing sustainable regional development.
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