PIC lauds TADB’s 8.4bn/- increase in dividends paid to the government

DAR ES SALAAM: THE Parliamentary Standing Committee on Public Investments (PIC) has commended the Tanzania Agricultural Development Bank (TADB) for strengthening its operations and increasing dividends paid to the Government from 500m/- to 8.4bn/-, a move reflecting improved efficiency in the management and utilisation of public capital.

The commendation was made by the committee’s Chairperson, Ojambi Didas Masaburi, during a committee meeting held in Dar es Salaam, where members had an opportunity to assess the bank’s mandate, operational structure and challenges facing the institution.

Masaburi said the committee has a responsibility to ensure that institutions receiving public capital protect and grow the investments while generating greater returns for the benefit of Tanzanians. He noted that TADB had made significant progress compared to its situation in 2015, when it faced serious challenges that threatened the continuation of its operations.

He said that despite those challenges, the bank had managed to safeguard the 60bn/- capital invested by the government while strengthening its capacity to contribute to government revenue through dividend payments.

As part of efforts to bring financial services closer to farmers, the bank has opened eight zonal offices in Kagera, Ruvuma and Kigoma regions to improve access to financial services and enable smallholder farmers to secure loans for expanding their agricultural activities.

TADB Board Chairman, Ismail Andulile, said the committee had directed the bank to ensure that loans reach smallholder farmers, particularly those living in rural areas. He noted that extending financial services to farmers at the grassroots level would help improve agricultural activities, increase production and strengthen their economic well-being.

For his part, Ng’ambi said the bank had received various recommendations from the committee and pledged to implement them, noting that reaching smallholder farmers and other citizens seeking agricultural loans was among the key priorities discussed.

He added that TADB would continue collaborating with commercial banks, which are important partners in extending financial services to farmers, while strengthening communication and cooperation with the institutions to improve the efficiency of agricultural lending across the country.

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