Tanzania Agricultural Development Bank disburses over US$131M to boost coffee farming and livestock in Kagera 

TANZANIA – The Tanzania Agricultural Development Bank (TADB) has disbursed loans amounting to Tsh 336.3 billion (US$131.86M) to support coffee farmers and livestock keepers in the Kagera region, providing a major financial boost to one of the country’s most important agricultural zones. 

The funding has been channelled through various TADB programmes aimed at improving access to credit for farmers and pastoralists who have long faced challenges linked to market volatility and limited financing. 

The bank’s Business Development Officer overseeing Kagera Region, Godwin Elisa, said the majority of the funds were directed to coffee production. “Out of the total disbursement, Tsh 315 billion (US$123.5M) has been allocated to coffee farmers, while Tsh 7.3 billion (US$2.86M) has been given to livestock keepers,” he said. 

Since TADB began providing loans in the region, a total of 312,339 farmers and livestock keepers have benefited, enabling them to increase crop production and improve livestock rearing.  

Elisa said projects funded by the bank have performed strongly, with farmers consistently improving the quality of their output through guaranteed markets offered by cooperatives supported by TADB. 

“Currently, TADB has reached farmers and livestock keepers in all districts of Kagera, with a large number of beneficiaries accessing the loans. The funds have enabled farmers to expand farm infrastructure and increase their livestock numbers,” Elisa said. 

He added that livestock keepers funded under the bank’s Kopa Ng’ombe Lipa Maziwa programme have recorded notable gains by growing their herds and adopting commercial dairy farming. According to Elisa, the scheme has helped to reduce poverty by linking farmers to reliable milk markets backed by TADB. 

The financing has also transformed coffee production in the region. “Through the loans, coffee farmers have been producing high-quality coffee, which now commands a strong market both locally and internationally,” he said. 

Rising coffee prices have further encouraged production. “When we started, the price of coffee was Tsh 800 (US$0.31) per kilogram, but since our involvement, prices have continued to rise year after year,” Elisa said, noting that prices have now reached about Tsh 5,000 (US$1.96) per kilogram. “The price increase has therefore encouraged many farmers to cultivate it, as coffee farming is now far more profitable than in the past.” 

Last year, the Kagera region unveiled a strategy to boost coffee output by expanding acreage, improving farm practices and promoting high-performing varieties. The plan targets a 36% increase in production from 54,203 tonnes in 2024/25 to 74,000 tonnes next season. 

The initiative involves planting 10,000 hectares with high-yield varieties and is expected to boost regional earnings by Tsh 96 billion (US$37.64M) annually, reinforcing coffee’s role as the region’s main cash crop. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.