World Bank Report Highlights Climate Risks and US$ 19 Billion Funding Needs for Tanzania’s Resilient Growth

The World Bank has released its Climate and Development Report for Tanzania, emphasizing US$ 19 billion funding needs to meet climate goals by 2030. The report warns of significant risks to GDP and poverty without immediate action, proposing key pathways for resilient and inclusive growth.
World Bank Tanzania Climate Report 2024

The World Bank Group has released its Country Climate and Development Report (CCDR) for Tanzania, revealing the urgent need for climate action to ensure resilient, inclusive, and low-carbon development.

The report warns that without decisive measures, Tanzania could face a 4% GDP decline by 2050 and identifies US$ 19 billion in funding requirements to achieve its climate commitments by 2030.

Tanzania is highly vulnerable to climate change, ranking 47th globally in susceptibility and 150th in readiness to cope.

TANZANIA BUSINESS & INVESTMENT GUIDE 2026

The report indicates that inaction could push 2.6 million more people into poverty and displace 13 million through internal migration. However, proactive climate measures could significantly mitigate these risks.

Key findings from the report include risks to GDP, with potential reductions of 4% by 2050 under a dry/hot climate scenario, and the possibility of reducing climate-related economic losses by 25% through investments in adaptation.

Agriculture, the backbone of Tanzania’s economy, is particularly vulnerable, with projected declines in crop and livestock production. The country requires US$19.23 billion to meet its updated Nationally Determined Contribution (NDC) commitments by 2030.

The CCDR outlines five actionable pathways to ensure Tanzania integrates climate considerations into its development plans. These include enhancing social protection and access to WASH and health services, improving land and water management to boost agricultural productivity and promote nature-based tourism, developing climate-resilient and low-carbon infrastructure such as transport and energy systems, strengthening governance and institutional frameworks for climate action, and mobilizing diverse funding mechanisms, including private investments and carbon markets.

“Tanzania has made impressive social and economic progress supported by steady GDP growth since 2000, but high poverty levels and insufficient investment to transform rainfed, low-productivity agriculture leave the economy vulnerable to climate risks,” said Nathan Belete, World Bank Country Director.

RELATED:  Mission 300 Africa Energy Summit: Dar es Salaam, 27th to 28th January 2025

“Our government appreciates that climate change presents both a challenge and an opportunity for Tanzania’s future. We are committed to investing in our people and ensuring that our most vulnerable communities are equipped to face climate challenges because we know that these measures also unlock new avenues for more sustainable growth,” said Dr. Mwigulu Nchemba, Minister of Finance.

The World Bank introduced Country Climate and Development Reports (CCDRs) to integrate climate considerations with national development. Tanzania’s CCDR aligns with Vision 2050 and updated NDCs, providing a roadmap for sustainable growth.

Related Posts
WAIPA Tanzania Investment and Special Economic Zones Authority (TISEZA) Award 2025
Read More

Tanzania’s Investment Authority Wins Award from World Association of Investment Promotion Agencies for Creating an Enabling Environment for Investment and Industrial Development

The Tanzania Investment and Special Economic Zones Authority (TISEZA) was recognized with the Special Least Developed Countries Award at the World Association of Investment Promotion Agencies (WAIPA) Investment Excellence Awards 2025 in Sharjah, highlighting Tanzania’s growing reputation for effective investment promotion and sustainable industrial development.
TANZANIA ANNUAL INFLATION RATE SEPTEMBER 2025
Read More

Tanzania Inflation Stayed at 3.4% in September 2025 with Food Prices Easing to 7.0%

The annual headline inflation rate in Tanzania remained stable at 3.4% in September 2025, while annual food and non-alcoholic beverages inflation eased to 7.0%. Between August and September 2025, prices of specific goods such as cocoyams (+8.9%), sweet potatoes (+7.6%), industrially bred live chicken (+5.0%), dried peas (+4.0%), and sorghum flour (+3.6%) recorded the largest monthly increases, driving the overall rise in the National Consumer Price Index to 119.86.