The government is looking for alternative ways for financing the Tanzania Agricultural Development Bank so that it can help to support agricultural development in the country.
The Deputy Minister for Finance and Economic Affairs, Ashatu Kijaji, said in Parliament yesterday that the government would use alternative means to finance the bank established in 2014 to promote development in the agricultural sector.
"The government is evaluating capital requirements for the bank. We are looking for other means of recapitalizing the bank," she said in her reply to a supplementary question from Oran Njeza (Mbeya Rural, CCM) who wanted to know about evaluation of the bank capital.
The deputy minister said TADB was given 60bn/- as capital in November 2014 and had raised it to 67.5bn/- as at the end of the first quarter of this year since it started operations in 2015.
She said the government had given 103bn/- to the bank through a soft loan from African Development Bank to increase credit funds to farmers.
Currently, the bank is continuing with the process of completing conditions for the second phase of a 103bn/- loan, she said.
The deputy minister said TADB had reached Mbeya and increased its loan portfolio from 799.9m/- in December 2017 to 2.54bn/- according to a financial report released in April this year.
The loans were given to seven agricultural projects and benefited 509 farmers in Mbozi, Momba, and Mbarali districts.