Tanzania's ambitious target of generating 6,000MW of electricity by 2025 is receiving a significant boost as several microfinance institutions join forces to support renewable energy financing at the grassroots level. These institutions, which are members of the Tanzania Association of Microfinance Institutions (Tamfi), include Enokwe Finance Ltd, Samekaya Saccos, Vision Fund Microfinance Bank, Maendeleo Bank, BRAC Tanzania Finance Ltd, Tujijenge Microfinance Ltd, Engishon Microfinance Ltd, and HP Finance.
Currently, the combined capacity of the various plants connected to the national grid stands at 1,872.04 Megawatts, reflecting a 10.5% improvement from the 1,694.55 Megawatts reported at the end of the 2021/22 financial year. Additionally, the country generates several additional megawatts through off-grid renewable energy projects. Recognizing the importance of renewable energy in achieving the government's electricity generation goal, Tamfi highlighted the pivotal role that microfinance institutions will play by rolling out renewable energy products and services.
Tamfi, a not-for-profit umbrella organization for microfinance institutions in Tanzania, has been actively promoting decentralized renewable energy financing in the country. The Chief Executive Officer of Tamfi, Ms. Winnie Terry, expressed her satisfaction with the positive response from various financial institutions in Tanzania toward renewable energy financing for end-users.
Under a project supported by the C.S. Mott Foundation, which is dedicated to building an inclusive financial ecosystem for end-users and enterprises in Tanzania, Tamfi members have been lending to end-users for renewable energy purposes. Tamfi has been implementing the first and second phases of the "Energy Access: Building an Innovative Financial Ecosystem for Enterprises and End Users" project.
Ms. Terry highlighted the project's contribution to increasing awareness among financial institutions about the importance of renewable energy financing. She emphasized its potential positive impact on Tanzania's economic development, poverty reduction, and environmental sustainability.
Richard Nyamonge, Managing Director of Enokwe Finance Limited, expressed their commitment to financing renewable energy projects for end-users. As a financial institution, they recognize their responsibility in endorsing sustainable practices, and supporting renewable energy projects is a significant step towards fulfilling that responsibility. Nyamonge expressed pride in contributing to the progression towards a more ecologically responsible and sustainable future for Tanzania.
The collaboration between microfinance institutions and Tamfi underscores the collective effort to drive the adoption of renewable energy solutions, empowering individuals and businesses while propelling Tanzania towards its ambitious electricity generation targets.
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