TADB dividend payout to govt up by 556pc

DAR ES SALAAM: THE Tanzania Agricultural Development Bank (TADB) dividend payout to the government increased by 556 per cent in the period ending December last year, reflecting the bank’s strong financial performance and growing role in supporting the agricultural sector.

The bank declared a dividend of 5.58bn/-, a significant jump from the 850m/- paid the previous year.

This sharp rise not only highlights improved profitability, but also signals greater returns on public investment and enhanced capacity to finance agricultural transformation across the country.

Speaking during the TADB’s Annual General Meeting (AGM), the Director of Planning and Research at the Treasury Registrar’s Office, Mr Mohamed Nyasama, attributed the sharp increase in dividend payout to the government’s strategic investment in strengthening TADB as a cornerstone institution for agricultural transformation.

“The impressive dividend growth reflects the impact of the government’s efforts to position TADB as a key driver of progress in the agricultural sector,” said Mr Nyasama.

In addition, the lender reported a solid net profit of 24.7bn/- in 2024, a 31 per cent increase from 14bn/- in 2023 driven largely by a 41 per cent surge in net interest income.

TADB’s total assets also saw a significant rise of 61 per cent reaching 917bn/- at the end of 2024 up from 607bn/- the previous year. Loans and advances grew by more than 51 per cent to 534bn/- compared to 331bn/- in 2023.

The quality of the bank’s loan portfolio also improved, with Non-Performing Loans (NPLs) dropping to 2.7 per cent, down from 3.8 per cent in 2023.

TADB Chairman, Mr Ishmael Kasekwa emphasised the government’s unwavering commitment to supporting the bank’s development mission.

In addition, the TADB Managing Director Mr Frank Nyabundege credited the strong performance to expanded loan disbursements across agricultural value chains.

“I would like to take this opportunity to thank the government for increasing the bank’s capital which has directly contributed to the bank’s efforts to bring change and revolution in agriculture from subsistence agriculture to commercial agriculture” he insisted