Tanzania emerged as the largest recipient of European Investment Bank funding in Sub-Saharan Africa in 2023, receiving EUR 270 million in 2023, the lender said in an emailed statement, saying the substantial investment underscores the EIB’s commitment to fostering economic growth and development in the region.
A high-level delegation from EIB Global, led by Vice President Thomas Östros, is visiting Tanzania to strengthen ties and evaluate ongoing projects. The delegation is set to meet with key figures, including President Samia Suluhu Hassan of Tanzania and President Hussein Mwinyi of Zanzibar, to discuss the progress and future of EIB-supported initiatives.
The EIB’s investment has significantly benefited over 10,000 small and medium-sized enterprises in Tanzania, with a notable impact on women-led businesses, which account for over 3,000 of these enterprises. The funding has also supported more than 900 blue economy enterprises and cooperatives in Zanzibar, highlighting the EIB’s commitment to inclusive growth.
One of the key projects under discussion is the Lake Victoria Water and Sanitation Project. The first phase, already completed, has improved water, wastewater, and sanitation services for urban and peri-urban populations in Mwanza, Bukoba, and Musoma. This project has increased access to clean water and sanitation, enhancing the quality of life for residents.
Additionally, the delegation will review the progress of airport rehabilitation and expansion in Bukoba, Kigoma, Tabora, Shinyanga, and Sumbawanga. These upgrades are expected to stimulate regional investment, create jobs, and enhance aviation safety by meeting international safety and security standards.
Future projects on the agenda include the next phases of the Bus Rapid Transit system, the second phase of the Lake Victoria Water and Sanitation Project, the Zanzibar Water Security Project, and the Tanga Plastic Waste Management Project. These initiatives are at various stages of evaluation and reflect the EIB’s ongoing commitment to sustainable development in Tanzania.
The EIB’s partnership with local banks, including CRDB, NMB, and KCB-Tanzania, has facilitated access to finance for SMEs. This collaboration has enabled banks to expand their lending portfolios and take on more risks, providing greater credit access to a wider range of business clients. Financial intermediaries benefit from the EIB’s favorable terms, which are passed on to SMEs, enhancing their ability to grow and create jobs.
The EIB’s involvement in Tanzania dates back to 1977, and it has since financed 36 projects with loans totaling €680 million. The lender’s focus has been on sectors with the highest potential for sustainable job creation, particularly in agriculture, green, and digital services.
During his visit, Vice President Östros will meet with local banks and SME beneficiaries to discuss the impact of the EIB’s investments. He will also visit businesses supported by the EIB in the blue economy sector in Zanzibar, with a particular focus on women and youth.
Vice President Thomas Östros praised Tanzania’s economic resilience and growth, noting the government’s support for private sector development. “The Tanzanian economy has shown great resilience and growth over the past years. The government has continued to support private sector development in partnership with local, regional, and international partners. This has made Tanzania a key partner under the EU’s Global Gateway initiative and hence a key partner for the EIB. We are more than happy to work together with our partners in Tanzania to further strengthen the country, both its public and private sector,” Östros said.
Emilio Rossetti, Deputy Head of the Delegation of the European Union to Tanzania, emphasized the enduring partnership between Tanzania and “Team Europe.” He stated, “This high-level visit and meetings represent the enduring partnership of Tanzania with ‘Team Europe’. The European Union, its Member States, and their implementing agencies and public development banks work together to deliver the Global Gateway vision: supporting smart investments in quality infrastructure, respecting the highest social and environmental standards, in line with the EU’s values and standards.”
The EIB’s substantial investment in Tanzania underscores its commitment to fostering sustainable economic growth and development in Sub-Saharan Africa. Through strategic partnerships and targeted funding, the EIB is playing a crucial role in transforming Tanzania’s economic landscape, driving innovation, and creating opportunities for businesses and communities alike.
