Tanzania: Launch of Historic AfDB-USAID Partnership to Finance Private Sector Participation in Tanzania’s Agricultural Development
The Bank Group, USAID and CRDB Bank on Thursday, September 4, 2008, launched a historical partnership in Dar-es-salaam, Tanzania, to finance private sector participation in agriculture, using a US$10 million partial credit guarantee facility that was recently approved by the AfDB board of directors for Cooperative and Rural Development Bank (CRDB). Speaking during the launch, the Tanzania Field Office (TZFO) Resident Representative, Sipho Moyo, highlighted the consistency of the partnership with the Bank’s private sector strategy that aims at improving both the physical and financial infrastructure in Bank Group regional member countries with a view to enhancing private enterprise productivity and competitiveness. The AfDB board of directors approved a 50% Partial Credit Guarantee Facility (PCGF) which will be co-financed by the AfDB, CRDB and USAID to help expand access to medium and long-term financing for 450 Small and Medium Enterprises (SMEs) in Tanzania, especially in the agricultural and eco-tourism sector, at least 30% of which will be owned by women. We are excited about the partnership, but more importantly it makes sense for the Bank to promote private sector involvement in agriculture as the most important sector given that 80 percent of Tanzanians are engaged in or derive their livelihood from agricultural activities and it contributes one-third of the GDP. The facility will not only enhance competitiveness, it will also help to improve food security in the country, Ms. Moyo said. The event was attended by the country’s Agriculture Minister, Stephen Wassira; US Ambassador, Mark Green; USAID Director, Pamela White and CRDB Managing Director, Charles Kimei.