Tanzania, Germany sign Sh78.6bn grant deal for climate resilience and conservation
The Permanent Secretary of the Ministry of Finance, Dr. Natu El-maamry Mwamba (right), and the Director of the German Development Bank (KfW) in charge of East Africa and the European Union, Mr. Christoph Tiskens, signing three grant agreements worth 25.68 million euros (equivalent to 78.58 billion shs) for water projects, the Climate Resilient Towns project and the Natural Resources Conservation project, known as the Project for Sustainable Development of Protected Areas, at the Conference Hall of the Sub-Office of the Ministry of Finance, in Dar es Salaam on July 9. PHOTO | COURTESY
What you need to know:
- The grant will fund three major initiatives: Sh45.90 billion will support the Project for the Sustainable Development of Protected Areas; Sh30.60 billion will be channelled to the Investment Financing Facility – Output Based Approach (IFF-OBA); and Sh2.08 billion will fund a feasibility study for climate-resilient towns
Dar es Salaam. The government of Tanzania has signed a three-year grant agreement worth Sh78.58 billion (€25.68 million) with the government of Germany to finance projects focused on climate-resilient towns, sustainable development, and infrastructure investment through a special financing facility.
The grant will fund three major initiatives: Sh45.90 billion will support the Project for the Sustainable Development of Protected Areas; Sh30.60 billion will be channelled to the Investment Financing Facility – Output Based Approach (IFF-OBA); and Sh2.08 billion will fund a feasibility study for climate-resilient towns.
The agreement was signed on July 9 by the Permanent Secretary in the Ministry of Finance, Ms Natu Mwamba, during a ceremony witnessed by the Deputy Ambassador of Germany to Tanzania, Mr Manuel Müller, alongside senior government and development officials.
Ms Mwamba said the IFF-OBA programme aims to provide incentives to Water Authorities in Tanzania to access commercial loans for infrastructure development.
“The goal is to enable Water Authorities to improve service delivery and revenue generation by accessing loans from commercial banks, with subsidies from the IFF-OBA programme,” she explained.
She further noted that the proposed project for climate-resilient towns will support the construction of water supply systems and sanitation facilities in the towns of Liwale, Michiga, Likokona, Nyengedi, Mtua, Longa, and Kiwalala in the Lindi and Mtwara regions. The initiative is expected to boost economic activity and social well-being through reliable water services.
On the sustainable development front, Ms Mwamba said the project will focus on the Serengeti and Katavi-Mahale ecosystems to ensure both conservation and socio-economic benefits for nearby communities.
She said the grant will support the Serengeti Ecosystem Development and Conservation Project (SEDCP) and the Katavi-Mahale Ecosystem and Corridor Conservation Project (KaMaCo), both aimed at preserving biodiversity and promoting sustainable land use.
She acknowledged Germany’s ongoing support and confirmed that the funding reflects commitments made during bilateral negotiations held in Dar es Salaam in 2024, where Germany pledged €70 million in support for various sectors.
“We greatly appreciate this support and look forward to close cooperation to ensure the timely preparation and successful implementation of these projects,” she said.
