TADB targets climate-smart farm lending

DAR ES SALAAM: Tanzania’s Agricultural Development Bank (TADB) on Tuesday launched a new green financing strategy aimed at expanding climate-smart lending across the agricultural value chain as climate shocks increasingly threaten food production and rural livelihoods.

The state-owned lender said the 2025-2027 Green Agri-Finance Strategy would support farmers, cooperatives and agribusinesses adapting to erratic rainfall, prolonged droughts and declining soil fertility.

TADB Board Member, Prudence Masako, speaking at the launch in Dar es Salaam, said the strategy was designed to channel climate-smart financing from smallholder farmers to large agro-processors.

“If we green only the smallholder, she has nowhere to sell climate-smart produce. If we green only the processor, the smallholder remains exposed,” Masako said.

She said the initiative would focus on the full agricultural value chain, including village savings groups, cooperatives, dairy processors and rice millers.

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Masako cited projects implemented by CARE International in Tanzania’s Iringa region, where women farmers used savings groups to invest in tree nurseries, irrigation systems and climate-resilient farming practices.

However, she said small community loans were insufficient to finance larger investments such as solar irrigation pumps, cold storage and aggregation centres needed to scale farming enterprises.

TADB said development partners including Agence Française de Développement (AFD), the African Development Bank and IFAD had supported the bank in assessing climate risks, strengthening internal environmental policies and developing digital climate-finance tools.