CRDB Bank partners with FAO to Boost Climate-Resilient Farming and Digital Agriculture in Tanzania
CRDB Bank and the Food and Agriculture Organization of the United Nations (FAO), have entered into a strategic partnership to enhance access to financial services for farmers, promote sustainable agricultural practices, and drive investment in climate-resilient farming techniques.
The partnership was formalized with the signing of a Letter of Intent (LoI) by Dr. Nyabenyi Tipo, FAO Representative in Tanzania, and Abdulmajid Mussa Nsekela, CRDB Group CEO and Managing Director. The signing ceremony, held at CRDB Bank Headquarters in Dar es Salaam, was attended by senior executives from both organizations and marked a significant step towards fostering sustainable agricultural practices in the country.
Speaking at the event, Nsekela emphasized CRDB Bank’s commitment to transforming the agricultural sector.
“Agriculture remains the backbone of Tanzania’s economy, employing over 75 per cent of the population and contributing 27 per cent to the Gross Domestic Product (GDP). However, financial constraints and climate change continue to challenge the sector’s productivity,” said Nsekela. “As a Direct Accredited Entity of the Green Climate Fund (GCF), CRDB Bank is committed to providing sustainable financial solutions that empower communities. This partnership with FAO will enable CRDB to provide tailored financial solutions, capacity building, and innovative products that will empower smallholder farmers to thrive,” he said.
Dr. Tipo underscored the importance of the collaboration, particularly in the areas of digital farming, agricultural insurance, and cooperative strengthening.
“It is the first time for FAO and CRBD Bank to put in place a shared intention.” Through this partnership, we aim to ensure that smallholder farmers are better equipped to face the challenges of climate change while improving their productivity and overall well-being,” said Dr. Tipo. “Through collaborations with private sector partners like the CRDB Bank, we can influence food systems transformation on a larger scale, unlocking new opportunities for inclusive economic growth, responsible supply chains, and enhanced resilience for small-scale producers, workers, and consumers alike,” she said.
Dr. Tipo further emphasized that resource mobilization will take a multi-stakeholder approach, engaging task forces, consultants, government agencies, and key players within the agricultural sector to ensure success.
FAO and CRDB Bank partnership
Under this partnership, FAO and CRDB will collaborate to promote climate-resilient farming techniques, improve land and water management, address post-harvest loss, and smallholder farmers’ access to financing. The partnership will also support sustainable agribusiness development, and the creation of innovative financial products tailored to the unique needs of farmers. A strong emphasis will be placed on expanding credit opportunities for farmers, offering insurance products to mitigate agricultural risks, and leveraging digital banking solutions to enhance financial inclusion in rural areas.
CRDB Bank, which currently leads the banking sector in agricultural financing by providing 60 per cent of all agricultural loans in Tanzania, will leverage its expertise and resources to ensure the successful implementation of the partnership’s objectives. The bank has been a key player in financing farm inputs, mechanization, warehousing, market linkages, and agribusiness investments.
FAO will contribute technical expertise and strategic guidance to ensure the adoption of sustainable farming techniques that align with Tanzania’s agricultural development agenda.
This partnership aligns with FAO’s Strategic Framework 2022-2031, which aims to promote the transformation of agrifood systems to be more efficient, inclusive, resilient, and sustainable.
The framework supports the achievement of the 2030 Agenda for Sustainable Development, with a focus on SDG 1 (No poverty), SDG 2 (Zero hunger), SDG 10 (Reduced inequalities), and SDG 13 (Climate action). It also reflects FAO’s Four Betters: better production, better nutrition, a better environment, and a better life. These principles guide the organization’s work to ensure that no one is left behind in the pursuit of a sustainable and inclusive food-secure future.
Furthermore, the partnership aligns with the Tanzanian government’s 10/30 Agenda, which seeks to boost the crop sub-sector GDP growth rate to 10 per cent by 2030. By fostering innovation and sustainability in agriculture, CRDB Bank and FAO reaffirm their commitment to driving economic growth and ensuring food security in Tanzania.
About CRDB Bank Plc
Celebrating 30 years of leadership in finance sector, CRDB Bank Plc stands as one of East Africa’s leading banks. Since its establishment in 1996, the bank has been a pillar of economic growth, offering Retail, Treasury, Insurance, Trade Finance, Syndications, Premier Banking, Agriculture, and Microfinance services.
CRDB Bank is the first bank in Tanzania to be rated amongst the top ten stable and safer to invest African banks by the world’s most respected rating agency, Moody`s Investors Services. Moody`s rated CRDB Bank with a “B1 stable outlook” which is the highest rating to have been acquired by banks or financial institutions in Sub Saharan Africa. UN Green Climate Fund accredits CRDB Bank since November 2019 and Global Finance recognizes it as the Best Bank in Tanzania for the year 2020.
CRDB Bank provides unmatched convenience in Tanzania, Burundi, and DRC serving more than 4 million customers with a large footprint of 268 branches, 28,000 CRDB Wakala, over 550 ATMs, over 2,800 merchants and a 24/7 Call Centre.
About FAO
The Food and Agriculture Organization of the United Nations (FAO) is a UN specialized agency that leads international efforts to end hunger by supporting governments in transforming agrifood systems for better production, better nutrition, better environment and a better life, leaving no one behind. With 195 members – 194 countries and the European Union, FAO works in over 130 countries worldwide. We believe that everyone can help to end hunger.
This year is FAO’s 80th Anniversary, a milestone year and an opportunity to build an unforgettable anniversary on a global scale that increases action for the transformation of agrifood systems, with the support of FAO teams, Members and partners.
For More information, please contact:
FAO in Tanzania
+255 748 772 140