Moses Nyangu (extreme left), an economist at the European Investment Bank regional hub in East Africa during a past event graced by President Samia Suluhu.
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●EIB Global delegation visits the country for meetings with President of the United Republic of Tanzania Samia Suluhu Hassan and the President of Zanzibar Hussein Mwinyi
●EIB Global invested EUR 270 million (TZS 777 billion) in Tanzania in 2023 Over 10,000 small and medium-sized businesses have benefited from the cooperation, out of which over 3,000 are women-led enterprises
A high-level delegation of the European Investment Bank (EIB Global) led by EIB Vice President, Thomas Östros, is visiting Tanzania for a raft of activities geared at ramping up its investment in the country. The visit provides an opportunity to take stock of EIB-supported projects with a particular focus on green private sector, public infrastructure, gender-lens investing and boosting of the blue economy.
During the visit, the delegation will meet with the President of the United Republic of Tanzania, Dr. Samia Suluhu Hassan and the President of Zanzibar, Dr. Hussein Mwinyi as well as top government officials.
The meetings will cover the handover of the first phase of the Lake Victoria Water and Sanitation Project. The EIB investment has increased coverage of water, wastewater and sanitation services to urban and peri-urban populations in Mwanza, and Bukoba and Musoma areas.
Talks will also centre on the ongoing airport rehabilitation and expansion works being supported by EIB Global in Bukoba, Kigoma, Tabora, Shinyanga and Sumbawanga. Once complete, the project is expected to stimulate investment in the area, create jobs and thus enhance income levels, boost commerce and trade with neighbouring areas, attract tourism and increase social and economic interactions at the airports. The project benefits also include an overall increase in aviation safety as the five airports will comply with international safety and security standards.
The parties will also discuss potential support for other investments such as 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 all under different stages of evaluation.
In addition, EIB VP Östros will meet with representatives of the leading banks in the country as well as some SME beneficiaries of the EIB Global’s partnership with local commercial banks.
Last year, Tanzania was the largest recipient of EIB support in Sub Saharan Africa. The country benefited from EUR 270 million (TZS 777 billion) of new investment to support businesses across Tanzania through partnerships with Tanzanian Banks, namely CRDB, NMB and KCB-Tanzania.
The Investment so far facilitated lending to over 10,000 small- and medium-sized businesses, out of which over 3,000 are women-led enterprises and over 900 are blue economy enterprises and co-operatives in Zanzibar.
Micro, small- and medium-sized businesses (MSMEs) are the economic lifeblood of African economies but are more vulnerable to crises than large enterprises. Improved access to finance is very important in boosting growth and creating jobs for the millions of young Africans entering the workforce each year. In developing countries, SMEs contribute more than one third of GDP and more than 80% of new jobs.
EIB Global’s partnerships with local banks are structured to allow them to increase their lending portfolios, take more risks and thus providing greater access to credit for a wider range of business clients.
Financial intermediaries benefit from EIB Global’s more favourable financial terms compared to commercial borrowing and banks transfer this advantage to final beneficiaries - SMEs. In conjunction with the credit line, EIB Global will provide, with EU support, technical assistance to the financial intermediaries as well as to the beneficiary SMEs to roll out successful projects. This increases the added value to EIB Global’s counterparts for the creation of sustainable enterprises.
This framework has helped commercial banks increase lending and focus on inclusive finance solutions and thus work with underserved private sectors they are reluctant to, due to the risks associated with the underlying projects.
EIB VP Östros said: “The Tanzanian economy has shown great resilience and growth over the past years. The government has also 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.”
Deputy Head of the Delegation of the European Union to Tanzania, Emilio Rossetti said: “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 started its operations in Tanzania since 1977 and has since provided loans financing 36 projects, amounting to €680 million (nearly TZS 2 trillion).
EIB Global’s focus has been to invest in the sectors with the highest potential to create sustainable jobs, especially MSMEs in agriculture, green and digital services. During his visit, Vice President Thomas Östros will visit some businesses that have received support in the blue economy in Zanzibar, with a focus on women and youth.
EIB Vice President Thomas Ostros, during a visit to a maize milling company that benefited from EIB funding through its partnership with local banks.
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