DAR ES SALAAM: A HIGH-LEVEL delegation from the Central Bank of Liberia is in Tanzania, to study the operations and governance framework of the Tanzania Agricultural Development Bank (TADB), as Monrovia moves toward establishing its first specialised agricultural development bank to improve accountability and credit flow in the sector.
Liberia has been receiving substantial agriculture and development funding from international partners, but officials say the absence of a dedicated institution has limited effective deployment and oversight of the money.
Speaking in Dar es Salaam over the weekend, TADB’s Director of Planning, Advisory and Corporate Affairs, Mkani Waziri said Liberia identified a structural gap that Tanzania’s model can help resolve.
“The Central Bank of Liberia has been receiving various funds dedicated to agriculture and development, but there is no specialised entity to manage these resources, issue credit and ensure proper reporting,” Waziri said.
“They are now seeking to establish an institution that can provide accountability, structured lending and a clear line of reporting to the central bank, functions that TADB has been able to execute effectively.”
The Liberian team is assessing how TADB blends development mandates with financial sustainability, including its risk management systems, credit processes and the regulatory environment that enabled the bank to become one of Africa’s fastest-growing development finance institutions. TADB’s performance offers a compelling case study.
According to its Audited Financial Statements for 2024, the bank grew its loan portfolio by 61 per cent, rising from 331.8bn/- to 534.2bn/-, while total assets increased 51 per cent to 917.4bn/-.
Profit before tax climbed 31 per cent to 24.7bn/- and non-performing loans dropped to 2.3 per cent, underscoring strong credit discipline.
The bank’s balance sheet has tripled in four years, supported by increased government capitalisation, AfDB financing and rising demand for agricultural lending.
TADB has disbursed more than 1.1tri/- to farmers, cooperatives and agribusinesses, benefitting over 230,000 producers across irrigation, livestock, agroprocessing and fisheries.
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Tanzania’s growing influence in agricultural finance was solidified last year when TADB was ranked second-best development finance institution among Southern African Development Community (SADC) members by the Association of African Development Finance Institutions (AADFI), scoring 91 per cent on governance, prudential standards and operational efficiency.
For Liberia, whose agriculture sector remains underdeveloped despite strong donor interest, Tanzania’s model provides both a technical blueprint and a governance solution.
Establishing an agricultural development bank would enable dedicated management of sector funds, streamlined allocation, improved reporting and accountability to regulators.
TADB Managing Director Frank Nyabundege recently noted that the bank’s steady performance demonstrates how a well-governed agricultural development institution can deliver national impact while maintaining financial health.
“Our results affirm that an agricultural development bank can achieve both stability and transformation,” Nyabundege said in the bank’s audited annual statement.
“We welcome knowledge-sharing with nations such as Liberia as Africa strengthens its food systems.”
The Liberian delegation is expected to compile recommendations for the establishment of its new institution after completing its assessment in Tanzania.
Officials on both sides say technical cooperation discussions are ongoing and may evolve into long-term collaboration.
This year, TADB marked ten years of its operations, having attracted international bench marking missions that highlights its expanding role as a regional reference point for agricultural finance and governance.