Tanzania infrastructure AfDB Supports Pursuit of Climate Resilience and a Just Energy Transition

The United Republic of Tanzania is highly impacted by climate change. It is estimated that 70% of all types of natural disasters in the country are linked to recurrent droughts and floods, with economic costs exceeding 1% of GDP annually. Several key sectors like infrastructure, agriculture and manufacturing are impacted by climate change related risks.

The government has made efforts to mitigate the impacts of climate change but the cost of addressing current climate change risks is estimated at about USD 500 million per year. Government’s budget is being constrained due to the country’s expansive geographical reach, competing development needs and a narrow fiscal space. The African Development Bank Group (AfDB) remains a dependable partner for Tanzania in its adaptation and mitigation efforts.

The AfDB supports major mitigation and adaptation projects in Tanzania:

Clean Infrastructure: The Bank is supporting the construction of the Malagarasi Hydropower plant which is expected to increase the country’s renewable energy capacity and reduce GHG emission by 1,050,096 tCO23/year. The Bank also supported among other projects, the development of the Kikonge mutli-purpose hydropower and irrigation dam to strengthen the country’s resilience to drought and improve food security.

Agricultural Inputs Support Project: The AfDB provided financing to the Republic of Tanzania to support its efforts to mitigate the impact of the global compounded shocks caused by the war in Ukraine on the domestic economy. The project will contribute to strengthening food security and resilience of the Tanzanian economy, with particular emphasis on increasing national agricultural productivity and mitigating food security. Its main objective is to improve production, productivity, and profitability of priority crops (wheat, sunflower and rice) by scaling up the delivery of affordable inputs to smallholder farmers in the target areas.

To learn more about the African Development Bank and procurement opportunities financed by the Bank, please contact Commercial Service AfDB at CSAFDB@trade.gov.