The African Development Bank (AfDB) announced on Wednesday, November 4, 2026, that it had approved a $60 million sovereign loan to Tanzania to strengthen the capital of Tanzania Agricultural Development Bank (TADB), the state-owned lender focused on agriculture. The AfDB board approved the financing on October 21.

The money will be channelled through Tanzania’s Ministry of Finance and Office of the Treasury Registrar before being invested as equity in TADB. It accounts for half of a $120 million recapitalisation programme, with the government contributing the other $60 million by capitalising eligible retained earnings.

More capital for longer-term farm loans

The additional equity is intended to help TADB finance farmers and agribusinesses directly while expanding lending through other financial institutions and co-financing arrangements with commercial banks. Longer loan maturities should support agricultural production, processing facilities and storage investments.

The financing gap is substantial. According to the AfDB, agriculture employs about 65% of Tanzania’s workforce and accounts for roughly a quarter of economic output, yet receives only around 12% of private-sector credit. The bank estimates that agriculture faces a $1.5 billion annual funding shortfall.

An 8,000-job target and climate-smart lending

The programme aims to support 8,000 jobs, with at least 30% of the beneficiaries expected to be women and 30% young people. By 2030, TADB aims to allocate 30% of its loan portfolio to women-owned businesses and 20% to youth-led enterprises.

Climate-smart agricultural lending is also targeted to rise to 12% of TADB’s portfolio by 2030, from 3% in 2025. The bank plans to finance more efficient irrigation, renewable energy, improved storage and technologies that cut crop losses.

The new funding builds on previous AfDB support for TADB. In May 2026, managing director Frank Nyabundege said the bank had received 392 billion Tanzanian shillings in government capital since President Samia Suluhu Hassan took office, according to Tanzania’s Daily News.