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Tanzania - Tanzania Agricultural Development Bank - Project Appraisal Report


The objective of the present project, which involves a loan from the African Development Fund (ADF) to the United Republic of Tanzania (URT) to be on-lent to the Tanzania Agricultural Development Bank (TADB), is to contribute to the development of the agriculture sector in Tanzania. The agriculture sector provides employment for about 67% of the population of Tanzania and has a very big potential for expansion given the abundance of arable land and the availability of inland water resources. However, the sector needs to be developed if Tanzania is to achieve sustainable economic development and poverty reduction. Specifically, in order for the country to achieve the Sustainable Development Goals and the Tanzania Development Vision 2025, the agriculture sector must sustainably grow at over 10% per annum. Unfortunately, over the past ten years, the sector has grown at an average of 4.4% per annum and contributed an average of 29.3% of Gross Domestic Product (GDP). These rates have recently declined to 3.2% per annum and 26% of GDP (Q2 2016), respectively. A major problem facing the agriculture sector is the unavailability of medium to long-term finance to support, among other things, agricultural production, processing and marketing. The TADB is designed to address this through the provision of much-needed funding to a sector that is key to the country’s development. Indeed, the requested loan from the ADF to the URT will be passed on to the TADB as a loan thereby enabling this institution to assist Tanzania in achieving its development goals by extending much-needed funding to the agriculture sector.

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