GCA and AfDB Partner to Enhance Climate Resilience in Tanzania’s Agricultural Sector
D
ar es Salaam, Tanzania-The Global Center on Adaptation (GCA), in collaboration with the African Development Bank (AfDB), is pleased to announce the launch of a transformative initiative under the Tanzania Agricultural Development Bank (TADB) Phase II program. This initiative aims to strengthen Tanzania’s agricultural sector by enhancing access to finance, boosting productivity, and increasing household incomes nationwide.
Agriculture is the cornerstone of Tanzania’s economy, contributing approximately 27% to the Gross Domestic Product (GDP) and providing employment to 67% of the population. Despite its significance, the sector faces substantial challenges, including limited access to financing and vulnerabilities to climate change, such as extreme weather events. Smallholder farmers, who manage 80-90% of agricultural land, and the 98% of economically active rural women engaged in farming, are particularly susceptible to these challenges. Strengthening climate resilience is essential for their livelihoods and the nation’s sustainable development.
The TADB Phase II program involves a $66 million investment to bolster TADB’s capital base, thereby enhancing its capacity to provide inclusive financial services to the agricultural sector. This capital injection is expected to facilitate broad-based economic growth through job creation, poverty alleviation, increased productivity, and improved household incomes. Additionally, the program aims to enhance the efficiency and competitiveness of agricultural enterprises, expand agricultural value chains—especially those involving women and youth—and strengthen the financing of the agriculture sector through improved access to finance.
As part of this initiative, GCA’s assistance focuses on strengthening institutional capabilities to effectively channel this financial support into impactful, sustainable investments for adaptation and resilience. Specifically, GCA will enhance the Tanzania Agricultural Development Bank’s (TADB) capacity by providing training and expertise on climate-resilient agricultural practices, thereby ensuring that the funding effectively reaches and benefits local communities. A critical element of GCA’s technical assistance includes the dissemination of innovative adaptation technologies and practices. In partnership with key knowledge institutions such as CGIAR, GCA is facilitating the deployment of climate-smart agricultural practices, drought-resistant crop varieties, and resilient infrastructure to improve agricultural productivity and safeguard livelihoods.
Key interventions include:
- Conducting a comprehensive climate risk assessment of TADB’s portfolio.
- Developing tools and methodologies for integrating climate risk assessments into TADB’s lending practices.
- Training TADB staff in these new tools and methodologies.
These efforts aim to enhance TADB’s capacity to support climate-resilient agricultural practices, thereby safeguarding the livelihoods of farmers and ensuring sustainable agricultural development.
The anticipated outcomes of this program include:
- Increased agricultural yields and improved food security.
- Greater access to finance and support for women and youth in agriculture.
- Creation of employment opportunities, driving inclusive growth and poverty alleviation.
- Enhanced access to farming technologies and extension services.
This collaboration between GCA, AfDB, and TADB exemplifies a shared commitment to sustainable development and climate resilience in Tanzania’s agricultural sector. By addressing the financial and climatic challenges faced by farmers, this initiative aims to transform Tanzania’s agriculture into a more productive, competitive, and resilient sector.
Notes to Editors
The Global Center on Adaptation (GCA) is an international organization that promotes adaptation to the impacts of climate change. It works to climate-proof development by instigating policy reforms and influencing investments made by international financial institutions and the private sector. The goal is to bring climate adaptation to the forefront of the global fight against climate change and ensure that it remains prominent.
Founded in 2018, GCA embodies innovation in its approach to climate adaptation as well as in its physical presence. It operates from the largest floating office in the world, in Rotterdam, the Netherlands. GCA has a worldwide network of regional offices in Abidjan, Côte d’Ivoire; Dhaka, Bangladesh; and Beijing, China. The Center will open a new office in Nairobi, Kenya in 2025.
