●This year, over 454 billion TZS (170 million EUR) of EIB’s investment has been dedicated to SMEs with a heavy focus on women led and/owned projects.
●EIB also signed its largest financing for the blue economy globally, dedicating over 267 billion TZS (100 million EUR) to the country.
Representatives from the European Investment Bank’s (EIB) regional hub for Eastern Africa recently concluded a visit to Tanzania’s Ministry of Finance and Planning as well as its partners such as the EU Delegation, World Bank and Agence Française de Développement (AFD) and many more, for discussions on avenues to increase investment in the country.
The European Investment Bank is the European Union’s long-term financing institution owned by its Member States and is the largest multilateral institution globally. EIB Global is the EIB Group’s specialised arm dedicated to operations outside the EU, and a key partner of the EU’s Global Gateway strategy. It finances sound investments across the globe including Africa in the priority areas of infrastructure, digitalization & innovation, climate action and energy as well as small and medium-sized enterprise development. The bank is the world’s largest financier of water infrastructure, climate action and environmental projects.
EIB Global increased interest in growing its portfolio is thanks to the current government’s strategic plan to improve the business climate thereby leading to improved investment in Tanzania.
Speaking during the visit, Tanzania’s Deputy Permanent Secretary for Public Finance Management, Hon. Amina K. Shaaban said: “We welcome the EIB and the fruitful discussions we have had on their support for development projects we can cooperate on with them. Their current visit is happening at the right time as Tanzania is currently updating its Development Vision 2050 from the current one which will end in 2025.
”The ministry official also lauded the work EIB Global is doing around providing investment support to women-led and/or women-owned projects, with EU support.
Building on Relationships;
On his part, Vice President of the EIB, Thomas Ostros said, “I am very pleased that the EIB team from the regional hub in Nairobi is following up on a pipeline of projects that we wish to support the government in actualising. Our business model looks at ensuring that we work with the government in achieving shared development goals which are also government priorities that improve citizens’ lives.
”Having invested in over 28 projects to date, EIB has already signed over 1.8 trillion TZS (680 million EUR) of support to the Government’s public sector initiatives, as well as offering credit lines (loans) to the country’s commercial banks and microfinance institutions for on-lending to private companies, especially SMEs, as well as to individuals in the private sector. Of this amount, over 1.34 trillion TZS (500 million EUR) has already been disbursed with more set to be released as projects kick off.
Some of the notable projects that EIB has supported are the Lake Victoria Water and Sanitation Program in Mwanza 1, Tanesco Power Project, the modernisation of the Port of Dar-es-Salaam, Kihansi hydroelectric power plant and loans to banks to support SMEs, in particular, the Blue Economy and women-led and/or owned projects.
The Bank is currently preparing several new projects including a solid waste management project in Tanga which is currently at pre-feasibility study stage. This project is under EIB’s Clean Oceans Project Identification and Preparation (COPIP) which aims at reducing the amount of plastic waste ending up in oceans in the coastal cities of Sub-Saharan Africa. Other examples are direct investments in ICT companies to boost digitalisation.
EIB Global finances projects alongside other African and international development partners. In Tanzania, the bank works closely with government to support investment in public sector infrastructure, back private sector business investment through local and international banks and cooperate with large scale corporate partners.
The excellent cooperation with partners in Tanzania enables the EIB to combine financial strength and share technical due diligence which is essential for the EIB’s successful support for large and small scale life changing investments across this country with a view to increase economic development and support sustainable development.
EIB Global’s growing interest in Tanzania was also showcased during the EU-Tanzania business forum that took place in February 2023. The forum brought together government officials, development partners as well as business people from Europe and Tanzania highlighting the various opportunities for economic partnership. It is during this forum that EIB Global announced a 721 billion TZS (270 million EUR) to investment in the country. This included the bank’s largest ever support to the Blue Economy anywhere in the world, through a 267 billion TZS (100 million EUR) financing initiative that is being implemented through partnering local commercial banks.
During the Forum, the Vice President of the EIB also held high level discussions with the President and several ministers, with an emphasis on increasing investment in the country by progressing and locking concrete financing for projects.