Project ID: 1905

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

Pledged amount

$ 651857507.1

Constant 2017 USD

Not recommended for aggregates

This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.

Summary

Funding agency [Type]

China Development Bank (CDB) [State-owned Policy Bank]

Recipient

Tanzania

Sector

Banking and financial services (Code: 240)

Flow type

Loan

Concessional

Vague

Category

Intent

Development (The next section lists the possible statuses.)

Commercial

Development

Representational

Mixed

Financial Flow Classification

Vague (Official Finance) (The next section lists the possible statuses.)

Official Development Assistance

Other Official Flows

Vague (Official Finance)

Flows categorized based on OECD-DAC guidelines

Project lifecycle

Status

Pipeline: Pledge (The next section lists the possible statuses.)

Pledge

Commitment

Implementation

Completion

Suspended

Cancelled

Milestones

Commitment

Estimated.

2009

Description

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.

Number of official sources

2

Number of unofficial sources

6

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Details

Cofinanced

No

Receiving agencies [Type]

Tanzania Agricultural Development Bank (TADB) [State-owned Bank]

Loan type

No Information

Gurarantee provided

No

Insurance provided

No