TADB turns climate risks into agricultural investment opportunities
ANTALYA: TANZANIA Agricultural Development Bank (TADB) is increasingly using digital technology and climate risk intelligence to identify investment opportunities in climate-resilient agriculture and improve financing for smallholder farmers.
The approach is aimed at helping the bank assess climate-related risks among its clients and identify appropriate investments that can strengthen farmers’ resilience while ensuring sustainable returns.
Speaking during a COP31 side event at the Tanzania Pavilion, organised by the government through the Ministry of Agriculture in collaboration with CARE International, TADB Managing Director Frank Nyabundege said the bank had developed and deployed a digital platform that provides climate risk profiles for its clients.
He said the information generated through the platform enables the bank to identify suitable climate-resilient agricultural investments, improve risk assessment and develop more strategic and inclusive lending approaches.
He explained that climate change was among the major factors contributing to the perception that agriculture was a high-risk sector because of its dependence on natural resources and vulnerability to changing weather conditions.
However, he said TADB viewed these challenges as investment opportunities, particularly in building the resilience of smallholder farmers, farming systems and the wider agricultural sector.
He noted that agricultural financing required a different approach from conventional lending because of seasonal production patterns and the interconnected nature of agricultural value chains.
To address this, the bank has adopted its Integrated Value Chain Financing (IVCF) Model, which supports activities from production and aggregation to value addition and export markets.
The Managing Director said TADB was also implementing a strategic roadmap focused on financing green and climate-smart agriculture, mobilising private capital and expanding the use of digital tools to guide climate-related investments.
He added that strengthening partnerships with development partners and other stakeholders would be critical in unlocking climate finance and accelerating investment in climate-resilient agriculture.
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He said that within the next 12 months, the bank would intensify efforts to mobilise climate funds, scale up its digital climate risk assessment platform and deepen partnerships to expand financing opportunities for smallholder farmers.
He emphasised that combining technology, innovative financing instruments and strategic partnerships would help transform climate-related challenges into opportunities for sustainable agricultural development.
