Tanzania Will Begin a US$15 Billion Water Investment Initiative via Creative Local Financing

Posted on : Monday, 1st July 2024

The first public water utility in East Africa to issue green bonds to finance the growth of water services and infrastructure is Tanzania's Tanga Water Supply Authority. The project is a component of Tanzania's US$15.02 billion water investment program, which backs the AIP objective of the Africa Union to raise an extra US$30 billion for sustainable sanitation and water security in Africa.  

 

During the Mind Gap Campaign launch at the 78th United Nations General Assembly (UNGA) on September 13, 2023, Vice-President Hon. Philip Mpango launched the Tanzania Water Investment Program.  

 

"The Tanzanian government pledges to use domestic funds to support capacity building, climate resilience, and governance, up to 43 percent of the overall budget, or US$6.45 billion." Hon. Philip Mpango stated.  

 

Speaking on the preparation of bankable water projects, Dr. Lugomela emphasized the significance of funding for climate change.

 

Numerous applications for these projects have already been filed to the African Development Bank's Climate Window, and they address transboundary water management, disaster management, water supply, and resource management.  

 

It is predicted that an extra $10 billion could be raised annually for water security if institutional investors and Africa's pension funds were to be mobilized. Global investors, who control assets worth up to US$550 billion, are particularly interested in African infrastructure projects. But when infrastructure projects are offered, water usually loses out because the projects aren't investment-ready or have a strong investment rationale.  

 

"Dr. Lugomela stated that some water utilities have already obtained loans from the fund to carry out the project." Additionally, the National Water Fund is applying for Adaptation Fund accreditation in an effort to boost its liquidity.