TADB records rapid financial growth
DAR ES SALAAM: TANZANIA’S Agricultural Development Bank (TADB) has recorded rapid growth in assets and lending last year, pushing its balance sheet close to 1.3tri/- and lifting dividend payments to the government by 50 per cent. The state-owned lender announced the performance recently following its annual general meeting held in Dar es Salaam. Treasury Registrar, … The post TADB records rapid financial growth first appeared on Daily News. The post TADB records rapid financial growth appeared first on Daily News.
Black News 
DAR ES SALAAM: TANZANIA’S Agricultural Development Bank (TADB) has recorded rapid growth in assets and lending last year, pushing its balance sheet close to 1.3tri/- and lifting dividend payments to the government by 50 per cent.
The state-owned lender announced the performance recently following its annual general meeting held in Dar es Salaam.
Treasury Registrar, Mr Nehemia Mchechu, said the bank’s total balance sheet expanded by about 41 per cent from roughly 917bn/- to nearly 1.3tri/- (490 million US dollars), making TADB one of Tanzania’s fastest-growing public financial institutions.
“If the bank continues growing at this rate of between 40 per cent and 50 per cent, next year we could be discussing a balance sheet of 2tri/-,” Mr Mchechu told reporters.
Shareholders approved a dividend payout of 8.38bn/- to the government, up from 5bn/- paid the previous year, reflecting stronger earnings and expanding business operations.
“Public investments must generate stronger returns for the government,” Mr Mchechu said, noting that improved performance by public institutions would help strengthen non-tax revenue collections.
Agriculture accounts for more than a quarter of Tanzania’s gross domestic product and employs over 65 per cent of the workforce, placing TADB at the centre of efforts to finance agricultural transformation and food security.
TADB’s Board Chairperson, Mr Ishmael Kasekwa attributed the bank’s improved performance to stronger governance, management reforms and continued support from President Samia Suluhu Hassan’s administration through capital injections and policy backing.
“We will continue working closely with management to sustain the bank’s growth and increase its contribution to the national economy,” Mr Kasekwa said.
TADB’s Managing Director, Mr Frank Nyabundege said the bank’s loan portfolio increased by 51 per cent to 807bn/- from 538bn/- previously, driven by increased lending to farmers, livestock keepers, fisheries projects and agribusinesses.
He said the bank’s financing had reached more than 2.6 million Tanzanians directly or indirectly, particularly in rural communities where agriculture remains the main source of livelihoods.
Mr Nyabundege said the government had injected 392bn/- into TADB during President Samia’s administration, excluding additional financing mobilised from development partners.
According to him, support from development finance institutions has enabled the lender to maintain annual growth rates of between 40 per cent and 50 per cent across key performance indicators.
The bank said it plans to continue expanding financing to commercial farming, irrigation, livestock and food security projects as demand for agricultural credit continues to rise nationwide.
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