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China Development Bank pledges to loan $500 million USD for setting up the Tanzania Agricultural Development Bank
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Tanzania Agricultural Development Bank (TADB) |
| Country | Tanzania |
| Start Date | Mar 01, 2009 |
| End Date | Sep 03, 2033 |
| Duration | 8,952 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 1905 |
Grant Description
China Development Bank pledges to loan $500 million USD for setting up the Tanzania Agricultural Development Bank According to the International Food Policy Research Institute (p. 13), in March 2009, the chairman of China Development Bank (CDB) visited Tanzania and signed a framework cooperation agreement with the head of the Bank of Tanzania regarding the establishment of the Tanzania Agricultural Development Bank (TADB).
CDB conducted a pre-feasibility study shortly thereafter. On October 27, 2009, the Tanzanian and Chinese governments announced plans to set up the bank. Their plans included CDB setting aside $500 million USD of capital to support local farmers utilize the bank.
However, the Chinese side were hesitant since the politicians running Tanzanian government banks have a reputation for not repaying loans.
The bank opened in May 2012, but funding for the bank appears to have come from entirely from the Tanzanian government, not China. According to Africanfarming.net, Tanzania provided $48 million USD every year for 8-years.
It does not appear as though the Chinese government followed through on its initial pledge to support the Tanzania Agricultural Development Bank.
Sources & References
- https://www.wbginvestmentclimate.org/advisory-services/regulatory-simplification/business-regulation/upload/Country-Presentations-Tanzania.pdf, http://tzexchange.blogspot.com/2012/03/farmers-bank-due-december.html
- China to assist Tanzania set up farmers bank, http://wbi.worldbank.org/sske/case/high-level-tanzanian-delegation-visits-china-study-poverty-reduction-and-agricultural-reforms, http://allafrica.com/stories/201207030207.html
- Agriculture is Priority
- An Overview of Chinese Agricultural and Rural Engagement in Tanzania
- Tanzania launches agriculture development bank
- CHINA DEVELOPMENT BANK OFFFERS ASSISTANCE TO TANZANIA Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Tanzania Agricultural Development Bank (TADB)
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