Hassan Magulumali
The Tanzania Agricultural Development Bank (TADB) has achieved another milestone in its journey toward strengthening the agricultural sector and boosting national economic growth, after earning international recognition in the 2024 assessment of Development Finance Institutions (DFIs) across Africa.
In June 2024, TADB was ranked second among DFIs in Southern African Development Community (SADC) member states, according to an evaluation conducted by the Association of African Development Finance Institutions (AADFI). The assessment was carried out under the Prudential Standards, Guidelines, and Rating System (PSGRS), a framework jointly developed with the African Development Bank (AfDB).
The bank attained an impressive score of 91 percent, with strong performance recorded in governance, financial prudence, and efficiency in executing its mandate. This achievement has not only placed TADB among the most reliable DFIs on the continent but also positioned it as a model institution for its peers in Africa.
Speaking on the achievement, TADB’s Chief Executive Officer, Frank Nyabundege, emphasized that the results demonstrate the bank’s commitment to excellence and innovation in delivering financial solutions tailored for the agricultural sector. “This recognition is proof of our dedication to transforming agriculture in Tanzania and ensuring the sector contributes more significantly to national economic growth,” he said.
Nyabundege added that TADB has been strategically positioning itself to support the government’s broader vision of industrializing agriculture and empowering smallholder farmers, agribusinesses, and cooperatives. The bank has rolled out various financing schemes aimed at promoting value addition, improving food security, and encouraging investment in modern farming technologies.
Over the years, TADB has introduced credit facilities designed to bridge financing gaps in both small- and large-scale agricultural production. It has also expanded its reach to rural communities where access to credit remains limited, ensuring that farmers and agribusiness players can tap into resources that enhance productivity and competitiveness.
The AADFI’s PSGRS assessment is widely recognized as a benchmark for evaluating the performance of DFIs, providing insights into their governance structures, financial soundness, and overall institutional sustainability. Institutions that perform well under this system are viewed as being more resilient and capable of driving long-term development goals.
For Tanzania, TADB’s recognition underscores the country’s growing influence in Africa’s financial and agricultural landscape. By maintaining high standards, the bank is helping to reinforce confidence among stakeholders, including development partners, government agencies, and private investors.
As the agricultural sector continues to play a central role in Tanzania’s economy, TADB’s success story is seen as a strong signal that with innovation, accountability, and sound financial practices, DFIs can serve as powerful engines of transformation not only for individual nations but for the wider African region.
