With a clear focus on fostering the Tanzanian business landscape and investment environment, the European Investment Bank (EIB) has declared plans to augment its current Sh1.8 trillion investment portfolio in the country, as revealed by senior bank officials. Thomas Östros, EIB Vice President, announced these intentions during the bank's recent visit to Tanzania. The delegation from EIB, the long-term financing institution of the European Union, owned by its member states, undertook the visit to evaluate the progress of bank-funded projects.
The EIB team, based in its Eastern Africa hub office in Nairobi, interacted with Tanzanian government officials and representatives of other multilateral institutions in the country. These face-to-face discussions prove invaluable in assessing the effectiveness and impact of EIB-backed initiatives in Tanzania. Thus far, EIB's contributions to Tanzanian development include the funding of 28 projects worth Sh1.8 trillion (680 million euros) and the provision of credit lines to Tanzanian commercial banks and microfinance institutions. The latter is designed to facilitate lending to the private sector, with a particular emphasis on small and medium-sized enterprises (SMEs).
Prominent projects within EIB's portfolio include the Lake Victoria Water and Sanitation Programme in Mwanza, the Tanesco Power Project, the modernisation of the Dar es Salaam port, and the Kihansi hydroelectric power plant. Östros expressed satisfaction at the Nairobi hub team's efforts in monitoring an assortment of future projects that the EIB is keen on supporting. Among these is a solid waste management project in Tanga that is in the pre-feasibility study stage. This project falls under the EIB’s Clean Oceans Project Identification and Preparation (COPIP), aiming to reduce plastic waste in the oceans of Sub-Saharan Africa's coastal cities. Also on the agenda are direct investments in ICT companies to accelerate digitalisation.
During the EIB visit, Amina K. Shaaban, Tanzania’s Deputy Permanent Secretary for Public Finance Management, commended EIB Global's efforts to support women-led and/or women-owned projects with EU assistance. She highlighted the timely nature of the EIB visit, as Tanzania is in the process of updating its Development Vision 2050 from the current one, set to conclude in 2025. Östros underlined the EIB's commitment to working with the Tanzanian government to actualize shared development goals, aimed at enhancing the lives of citizens. He noted that over Sh1.34 trillion has already been disbursed, with more funds set to be released as projects commence.
EIB Global operates alongside other African and international development partners, supporting public sector infrastructure investment, backing private sector business investment through local and international banks, and collaborating with large-scale corporate partners.
EIB Global's growing interest in Tanzania was showcased at the EU-Tanzania business forum in February 2023. This event fostered dialogue between government officials, development partners, and business people from Europe and Tanzania, highlighting potential economic partnerships. The highlight of the forum was EIB Global's announcement of a Sh721 billion (270 million EUR) investment in Tanzania, marking its largest-ever support to the Blue Economy globally.