Tanzania’s TADB lends 12.1 bln/- to farmers in Zanzibar

ZANZIBAR: Tanzania’s Agricultural Development Bank (TADB) has disbursed 12.11 bil/- ($4.7 million) in agricultural loans in Zanzibar, supporting 47 projects and reaching 571 small- and medium-scale farmers across Unguja and Pemba, the bank said.

The financing has targeted key agricultural value chains, including cloves, poultry, vegetables and fruits, and dairy farming. Of the total amount lent, 1.07 bil/- was allocated to businesses led by women and youth, reflecting the bank’s push to expand inclusive access to agricultural finance.

TADB said the loans have supported investments in crop processing, cold storage facilities, warehouses, irrigation infrastructure, farm inputs and produce off-taking arrangements aimed at improving productivity and reducing post-harvest losses.

Cloves accounted for the largest share of financing, followed by poultry farming, horticulture and dairy production, sectors considered central to Zanzibar’s food security and export potential.

ALSO READ: TADB’s decade of impact: 631bn/- in loans

The state-owned development bank said it is expanding access to agricultural capital in Zanzibar through a mix of direct lending, wholesale financing to commercial banks and its Smallholder Credit Guarantee Scheme (SCGS), which helps farmers lacking collateral to access loans.

TADB added that its strategy for Zanzibar focuses on promoting commercial agriculture and the blue economy through integrated value chain financing, working with local institutions to unlock investment opportunities in agriculture, livestock and fisheries.

Since its establishment in 2015, TADB has disbursed more than 1.3 tril/- nationwide to support the transformation of agriculture into a commercially driven sector, the bank said.