Tanzania and the Federal Republic of Germany, through the German Development Bank (KfW), have signed three grant agreements worth 25.68 million euros (equivalent to 78.58 billion TZS) for water and natural resource projects.
These agreements were signed at the Small Offices of the Ministry of Finance in Dar es Salaam by the Secretary General of the Ministry of Finance, Dr. Natu El-maamry Mwamba, and on the German side, they were signed by the Deputy Ambassador of Germany in Tanzania, Hon. Manuel Muller, and the Director of the German Development Bank (KfW) overseeing East African countries and the European Union, Mr. Christoph Tiskens.
Dr. Mwamba said that the signed agreements are for a water project funding program based on results (Investment Financing Facility – Output Based Approach (IFF-OBA)) amounting to 10 million euros, equivalent to 30.6 billion Tanzanian shillings.
Another agreement pertains to funding for feasibility studies for the Climate Resilient Towns project, amounting to 2.08 billion Tanzanian shillings.
He mentioned that the third agreement is for the implementation of the Project for Sustainable Development of Protected Areas, amounting to 15 million euros, equivalent to 45.9 billion shillings.
The aim of these projects is to encourage Water Authorities in Tanzania to borrow from Commercial Banks to build water infrastructure, thereby enhancing services and increasing revenue.
He stated that through the IFF – OBA Program, qualifying authorities can borrow from Commercial Banks and receive grants from the program, where eligible Authorities can be awarded a grant of up to 50% of project costs, not exceeding one million Euros.
Additionally, these contracts focus on the conservation and development of the Serengeti and Katavi National Parks, ensuring that there is preservation and social benefits for the communities surrounding these reserves.
Furthermore, Dr. Mwamba assured the German government that the intended projects will be fully implemented, and that Tanzania, under the leadership of Hon. Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania, will continue to strengthen developmental cooperation with Germany for the benefit of both nations.
On his part, the Deputy Ambassador of Germany in Tanzania, Hon. Manuel Muller, mentioned that the signing of these three contracts is part of the ongoing financial cooperation between Tanzania and Germany through its development bank (KfW).
"I am very pleased to accomplish this task and I wish the people of Tanzania great progress, especially in Natural Resources, which also means tourism. There are many tourists from Europe, particularly from Germany, and this brings significant economic strength to the country, which is crucial. I can assure you that Germany will continue to be a true partner of Tanzania; we will stand together with you," said Hon. Muller.
Meanwhile, the Director of the German Development Bank (KfW) overseeing East African countries and the European Union, Mr. Christoph Tiskens, stated that these contracts are a sign of another step forward in the cooperation between Tanzania and Germany, which has been strong since the 1960s.
Mr. Christoph Tiskens said that the two agreements will significantly impact crucial sectors for Tanzania's development, through the second phase of the Investment Financing Facility for Water Infrastructure, valued at 10 million Euros, which will create new opportunities for water authorities in Tanzania via local banks.
"The aspect of utilizing local banks is extremely important because this innovative approach helps promote bankable projects for water authorities, especially in a context where Tanzania requires substantial investment and funding," Mr. Tiskens remarked.
He further added that the second agreement signed, titled "Sustainable Development of the Ecological System of Conservation Areas," will strengthen cooperation between the two countries along with local stakeholders, and this agreement aims to enhance the conservation of natural resources, which are a unique heritage of Tanzania, while also establishing value chains for the communities living near these natural resource areas, to stimulate economic growth and create jobs.