TADB: Climate shocks cost agriculture millions annually

DAR ES SALAAM: Tanzania’s agricultural sector is losing tens of millions of dollars annually to climate shocks, the head of the state-owned Tanzania Agricultural Development Bank (TADB) said on Tuesday, warning that prolonged droughts and floods were threatening food security and rural incomes.

TADB Managing Director Frank Nyabundege said climate change had become one of the biggest risks facing farmers, agribusinesses and lenders tied to the sector, which remains the backbone of Tanzania’s economy.

“Climate change continues to affect agricultural production, food security and the incomes of citizens, especially those in rural areas,” Nyabundege said during a public event in Tanzania’s capital Dar es Salaam.

He cited recent studies showing Tanzania’s agricultural sector suffers losses of about $25 million due to declining production linked to excessive rainfall, while floods and droughts account for another $140 million in losses.

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Nyabundege said TADB had disbursed about 67 billion Tanzanian shillings ($25 million) toward projects linked to climate resilience, benefiting 2.6 million people across more than 812 projects nationwide.

He said the bank had issued loans worth around 1.2 trillion shillings over the past decade, with nearly 89% disbursed during President Samia Suluhu Hassan’s administration as the government pushed to commercialize agriculture and expand access to financing.

Agriculture accounts for roughly a quarter of Tanzania’s gross domestic product and employs the majority of the country’s workforce, according to government data.

Nyabundege said increased political support and concessional financing had helped raise agriculture’s share of total bank lending in Tanzania from about 7.7% when President Hassan took office to 13.2% last year.