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Overview

China Development Bank pledges to loan $500 million USD for setting up the Tanzania Agricultural Development Bank

Commitments (Constant USD, 2023)$693,658,885
Commitment Year•2009Country of Activity•TanzaniaDirect Recipient Country of Incorporation•TanzaniaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Mar 1, 2009

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

State-owned Banks

  • Tanzania Agricultural Development Bank (TADB)

Loan desecription

China Development Bank pledges to loan $500 million USD for setting up the Tanzania Agricultural Development Bank

Interest type•Unknown

Narrative

Full Description

Project narrative

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. The loan terms are unknown. 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.