The Japan International Cooperation Agency (JICA) signed a Yen Loan Agreement (L/A) with the Tanzanian government on January 14 in Dar es Salaam, Tanzania, for the “Agriculture and Rural Development Two-Step Loan Project. The outline of the project is as follows
Signing Ceremony
Project Summary
Agriculture and Rural Development Two-Step Loan Program
Agricultural and Rural Development Two Step Loan Project
Country (region covered)
United Republic of Tanzania (All of Tanzania)
Business Objectives
This project will facilitate the financial intermediary function and improve agricultural productivity related to agricultural and rural development finance in Tanzania by providing two-step loans to farmers and others through the provision of medium- to long-term funds to TADB and capacity building support to TADB throughout Tanzania, thereby contributing to the industrialization and commercialization of the agricultural and rural sector. This will not only contribute to the industrialization and commercialization of the agricultural and rural sector in Tanzania, but will also contribute to food security in Tanzania and abroad.
Business
(a) Two-step loans: Loans to small farmers, farmer groups, and agribusinesses, as well as medium- to long-term loan funds for women and youth engaged in horticultural crop cultivation.
(b) Consulting services: support for overall operation and management of the project, capacity building of TADB and intermediary financial institutions, support for preparation of guidelines for revolving fund operation, and strengthening of cooperation with other JICA projects and aid agencies.
Loan amount (maximum)
22,742 million yen
Interest Rates
Body: 0.20% Consulting and services: 0.20
Redemption period
40 years (including 10 years of deferment)
Procurement Conditions
General untied
Implementing Agency
Tanzania Agricultural Development Bank
Contribution to the achievement of the SDGs
Goal 2 (Zero hunger)
Goal 8 (both job satisfaction and economic growth)
Schedule for future project implementation (tentative)
(1) Project completion date: August 2029 (project completion upon completion of the loan)
- Expected date of sending invitation for consulting services (detailed design, etc.): March 2025
© Source JICA
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