European Investment Bank seeks to grow current 1.8trn/- investment portfolio in Tanzania.

European Investment Bank seeks to grow current 1.8trn/- investment portfolio in Tanzania.

The European Investment Bank (EIB) has shown interest in expanding its investment portfolio in Tanzania due to the government’s efforts to improve the business climate and stimulate investment in the country. Representatives from the EIB’s regional hub for Eastern Africa visited Tanzania’s Ministry of Finance and Planning, as well as other partners such as the EU Delegation, World Bank, and Agence Française de Développement (AFD), to discuss avenues for increasing investment in Tanzania.

Tanzania’s Deputy Permanent Secretary for Public Finance Management, Amina Shaaban, welcomed the EIB’s visit and expressed appreciation for the fruitful discussions on potential development projects. She highlighted the importance of the visit, as Tanzania is currently updating its Development Vision 2050. Shaaban also acknowledged the EIB’s support for women-led and women-owned projects, which is being carried out with EU assistance.

Vice President of the EIB, Thomas Ostros, emphasized the bank’s commitment to collaborating with the government to achieve shared development goals and prioritize projects that improve the lives of citizens. The EIB has already invested in over 28 projects in Tanzania, providing significant support to the government’s public sector initiatives and offering credit lines to commercial banks, microfinance institutions, and individuals in the private sector. A substantial portion of the committed support has already been disbursed, with more funds to be released as projects progress.

Some notable projects supported by the EIB include the Lake Victoria Water and Sanitation Program, the Tanesco Power Project, the modernization of the Port of Dar-es-Salaam, Kihansi hydroelectric power plant, and loans to banks to support SMEs, the Blue Economy, and women-led and/or owned projects. The EIB is also preparing new projects, including a solid waste management initiative in Tanga aimed at reducing plastic waste in coastal cities through its Clean Oceans Project Identification and Preparation (COPIP) program. Additionally, the EIB plans to invest in ICT companies to promote digitalization.

The EIB works closely with the Tanzanian government, development partners, and corporate entities to finance projects in the public sector, support private-sector business investments through local and international banks, and facilitate collaboration on large-scale investments. The bank’s growing interest in Tanzania was demonstrated during the EU-Tanzania business forum held in February 2023, where the EIB announced a significant investment of 721 billion Tanzanian shillings (270 million EUR) in the country. This included their largest-ever support to the Blue Economy globally, implemented through partnerships with local commercial banks.

As the European Union’s long-term financing institution, owned by its member states, the EIB is the largest multilateral institution globally. EIB Global, the specialized arm dedicated to operations outside the EU, plays a crucial role in financing sound investments worldwide, including in Africa, in areas such as infrastructure, digitalization, innovation, climate action, energy, and small and medium-sized enterprise development. The bank strongly focuses on water infrastructure, climate action, and environmental projects, making it the largest financier in these areas globally.