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France Supports Tanzania Agriculture Bank With EUR 80 M Loan

Samia Suluhu Hassan with Emmanuel Macron

On 11th February 2022, Tanzania’s President Samia Suluhu Hassan has met with French President Emmanuel Macron at the One Ocean Summit in Brest to discuss trade and business deals.

On the side of the Summit, President Suluhu, Franck Riester, Minister Delegate in charge of Foreign Trade, and Rémy Rioux, CEO of the French Development Agency (AFD), presided over the signing of three financing agreements between France and Tanzania, totalling EUR 259 million.

In order to facilitate access to finance for the Tanzanian agricultural sector, AFD and the Tanzanian Ministry of Finance and Planning agreed upon a EUR 80 million sovereign loan from AFD, together with a EUR 1 million grant for technical assistance.

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This line of credit will aim to strengthen the Tanzania Agricultural Development Bank (TADB) in its role as a catalyst for financing the agricultural sector.

The financial support will enable the bank to increase the financial inclusion of the sector’s stakeholders (especially women and the youth) and promote better environmental and social practices.

In addition, AFD also signed a EUR 178 million sovereign loan agreement with the Tanzanian government to support the Dar Es Salaam’s sustainable urban mobility development policy.

The loan will finance the fifth phase of the city’s Bus Rapid Transit system (DART), which will reduce carbon emissions from the sector, curb pollution and facilitate access to services for the population.

Commeting on the agreements, CEO Rioux explained that these significant agreements bring the portfolio of projects supported by AFD in Tanzania to a total of EUR 1 billion.    

He explained that “The partnership with TADB will make it possible to reach and include the largest possible number of stakeholders in the agricultural sector, targeting women and young people in particular, while promoting better agricultural practices, in line with AFD’s 100% Paris Agreement commitment. As for the financing of a BRT line, which will improve access to socio-economic services in the capital while reducing the sector’s carbon footprint, it is in line with a fair transition trajectory and with our 100% social cohesion commitment.”

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During here visit to France President Suluhu was received by President Macron on Monday 14th February at the State House in Paris where they held dialogues on mutual economic agreements between the two countries.

While in Paris, President Suluhu also visited Station F, the world’s largest startup facility located in Paris.

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