Dar es Salaam – In a significant move to bolster Tanzania's economic growth, the European Investment Bank (EIB) Vice President Thomas Östros is leading a high-level EU delegation to the East African nation.
The visit announced on Tuesday 2nd July 2024, aims to enhance the bank’s investment in Tanzania, focusing on green private sector initiatives, public infrastructure, gender-lens investing, and the blue economy.
The visit comes as Tanzania grapples with ballooning national debt, which has reached Sh91.7 trillion, and widespread poverty among its populace.
Despite these challenges, the EIB's commitment to Tanzania underscores the country's strategic importance under the EU’s Global Gateway initiative.
During a press briefing, Östros praised the Tanzanian government's support for the private sector, highlighting the nation's remarkable economic resilience and growth. “Tanzania has become a key partner for the EIB, and we are committed to working together to strengthen both its public and private sectors,” Östros stated.
The delegation is set to meet with President Samia Suluhu Hassan, President Hussein Mwinyi, and other top officials.
Discussions will include the handover of the first phase of the Lake Victoria Water and Sanitation Project, aimed at expanding water, wastewater, and sanitation services in urban and peri-urban areas.
The delegation will also review the ongoing airport rehabilitation and expansion projects in Bukoba, Kigoma, Tabora, Shinyanga, and Sumbawanga, which are expected to boost investment, create jobs, and enhance regional trade and tourism.
Future investment discussions will cover the next phases of the Bus Rapid Transit system, Phase 2 of the Lake Victoria Water and Sanitation Project, the Zanzibar Water Security Project, and the Tanga Plastic Waste Management Project. These projects are in various stages of evaluation.
In addition, Östros will meet with representatives from Tanzania’s leading banks and SMEs benefiting from EIB Global’s partnerships with local banks. In 2023, Tanzania received Sh777 billion (EUR 270 million) in new investments from the EIB, making it the largest recipient of EIB support in Sub-Saharan Africa.
This investment has supported over 10,000 small and medium-sized businesses, including over 3,000 women-led enterprises and over 900 blue-economy enterprises and cooperatives in Zanzibar.
Tanzania's reliance on international investments from entities like the EIB highlights a broader trend of the nation seeking financial support from developed countries.
These investments are crucial for economic growth, particularly as the country faces mounting debt and persistent poverty.
The EIB’s involvement has been pivotal in enabling local banks to expand their lending portfolios and offer greater access to credit for SMEs, which are vital to economic stability and job creation.
Deputy Head of the European Union Delegation to Tanzania, Emilio Rossetti, emphasized the enduring partnership between Tanzania and “Team Europe,” stating, “The European Union and its Member States are committed to delivering the Global Gateway vision, supporting smart investments in quality infrastructure while adhering to the highest social and environmental standards.”
Since beginning operations in Tanzania in 1977, the EIB has financed 36 projects with loans totaling Sh2 trillion (EUR 680 million).
EIB Global’s focus remains on sectors with high potential for sustainable job creation, especially in agriculture, green initiatives, and digital services. During his visit, Östros will also engage with businesses in Zanzibar's blue economy, particularly those led by women and youth.
Tanzania's economic resilience hinges on strategic partnerships and investments from entities like the EIB, which play a critical role in driving sustainable development. These collaborations are essential in addressing the nation's soaring debt and pervasive poverty.
The EIB’s initiatives, especially in supporting SMEs, green projects, and public infrastructure, are pivotal in stimulating growth and creating jobs for millions of Tanzanians. With continued international support, Tanzania is poised to transform its economic landscape, ensuring a brighter future for its citizens. The nation's journey toward prosperity is far from over, but with robust backing, a new era of economic vitality and poverty alleviation is within reach
