Project to facilitate financial intermediary functions related to agricultural and rural development finance in Tanzania and to improve farmers’ productivity
Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the United Republic of Tanzania in Dar Es Salaam, to provide Japanese ODA loan for the Agricultural and Rural Development Two Step Loan Project.
Agricultural and Rural Development Two Step Loan Project
The objective of the Project is to facilitate financial intermediary functions related to agricultural and rural development finance in Tanzania and to improve farmers’ productivity through provision of medium and long-term Sub-Loan(s) to a group of farmers and other beneficiaries in Tanzania by extending long-term financing to TADB and supporting capacity building of TADB, thereby contributing to the industrialization and commercialization of the agricultural and the rural sector, as well as to the Tanzania’s domestic food security.
Project Component
A) Two-step loan: Loans for small-sized farms, farming household groups, and agriculture-related companies, as well as the provision of mid- to long-term loan funds for women and young people engaged in the cultivation of horticultural crops.
B) Consulting service: Support for the operation and management of the entire project, capacity building of TADB and financial intermediaries, support for preparing guidelines on the operation of revolving funds, and the reinforcement of collaboration between other JICA offices and aid organizations.
The project will offer a maximum Loan Amount of 22,742 million Japanese Yen for 40 Years Repayment Period and is excecuted by Tanzania Agricultural Development Bank. The project will be completed in August 2029 after the loan disbursement has been completed, and initiation will be around March 2025.
