The Abu Dhabi Fund for Development (ADFD) recently bolstered Tanzania’s energy security efforts by signing a $30 million loan agreement with the country’s government. This vital initiative aims to connect the Kagera region to Tanzania’s national electricity grid. The project is designed to reduce the country’s reliance on energy imports and provide sustainable electricity to local communities; a significant step towards the development of Tanzania’s energy sector.
The agreement was signed by Mr. Mohamed Saif Al Suwaidi, Director General of ADFD, and Dr Mwigulu Nchemba, Minister for Finance of Tanzania. This project is not only an investment in energy infrastructure but also a catalyst for economic growth. The funds will stimulate economic activities, develop existing industries, and create job opportunities. It also helps Tanzania to reduce its dependency on energy imports.
The ADFD has a long history of supporting Tanzania’s energy sector. In addition to the recent loan agreement, the fund also provided a separate $30 million financing package for the development of the country’s renewable energy infrastructure. This financing is expected to benefit over 900,000 people who will gain access to sustainable and affordable energy.
The ADFD’s initiatives are in alignment with the United Nations’ Sustainable Development Goals (SDGs), particularly SDG7. This goal focuses on providing access to affordable, sustainable, and modern energy for all, a vision shared by the ADFD and the Tanzanian government.
The ADFD’s commitment to Tanzania’s energy sector extends beyond these projects. The Fund also financed another substantial project in Tanzania worth $105.4 million, which includes the construction of a 50MW solar power plant in the Kishapu region. This solar power plant project is expected to have significant environmental benefits, reducing carbon emissions by an estimated 1.4 million tons. Moreover, it will help Tanzania to reduce its reliance on hydro and fossil fuel power generation, promoting a more sustainable and environmentally friendly energy landscape.
The ADFD’s commitment to Tanzania’s energy sector, as evidenced by these significant financial contributions, is a testament to its dedication to sustainable development and the promotion of renewable energy. Their efforts are helping to shape a more sustainable and resilient energy future for Tanzania.
