2025.01.15
On January 14, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the United Republic of Tanzania in Dar Es Salaam, to provide Japanese ODA loan for the Agricultural and Rural Development Two Step Loan Project.
Signing ceremony
Outlines on the project are provided as below.
Terms and Amount of Loan
- Country (Target Areas)
United Republic of Tanzania (Throughout Tanzania)
- Project Objective
The objective of the Project is to facilitate financial intermediary functions related to agricultural and rural development finance in Tanzania and to improve farmers’ productivity through provision of medium and long-term Sub-Loan(s) to a group of farmers and other beneficiaries in Tanzania by extending long-term financing to TADB and supporting capacity building of TADB, thereby contributing to the industrialization and commercialization of the agricultural and the rural sector, as well as to the Tanzania’s domestic food security.
- Project Component
A) Two-step loan: Loans for small-sized farms, farming household groups, and agriculture-related companies, as well as the provision of mid- to long-term loan funds for women and young people engaged in the cultivation of horticultural crops.
B) Consulting service: Support for the operation and management of the entire project, capacity building of TADB and financial intermediaries, support for preparing guidelines on the operation of revolving funds, and the reinforcement of collaboration between other JICA offices and aid organizations.
- Maximum Loan Amount
22,742 million Japanese Yen
- Annual Interest Rate
Project: 0.20%, Consulting Services: 0.20%
- Repayment Period
40 Years
- Grace Period
10 Years
- Procurement
General Untied
- Executing Agency
Tanzania Agricultural Development Bank
- Contribution to SDGs
Goal 2（Zero Hunger）
Goal 8（Decent Work and Economic Growth）
- Planned Implementation Schedule
1. Completion of the Project: August, 2029, when the loan disbursement is completed
2. Issuing of letters of invitation for consulting services (including detailed design work): March, 2025
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