On July 9, 2025, Tanzania signed three grant agreements worth EUR 25.68 million (approx. TZS 78.58 billion) with Germany through the German Development Bank (KfW) to support critical projects in water supply, climate resilience, and natural resource conservation.
The agreements were signed in Dar es Salaam by the Permanent Secretary of the Ministry of Finance, Dr. Natu El-maamry Mwamba, and KfW East Africa and EU Director Christoph Tiskens, along with German Deputy Ambassador to Tanzania, Manuel Muller.
The funding includes EUR 10 million (TZS 30.6 billion) for the second phase of the Investment Financing Facility – Output Based Approach (IFF-OBA), designed to help Tanzanian water utilities access commercial loans for infrastructure development, with a provision for 50% project cost subsidies up to EUR 1 million for eligible authorities.
An additional TZS 2.08 billion has been allocated for the feasibility study of the “Climate Resilient Towns Project,” and EUR 15 million (TZS 45.9 billion) will go to the “Project for Sustainable Development of Protected Areas,” aimed at conserving Tanzania’s unique natural heritage while improving livelihoods around protected areas like Serengeti and Katavi-Mahale.
Dr. Mwamba emphasized that the projects will incentivize water utilities to partner with commercial banks, ultimately enhancing water services and increasing revenue generation.
He also reaffirmed Tanzania’s commitment to fully implement the projects and to continue strengthening development cooperation with Germany under the leadership of President Samia Suluhu Hassan.
German Deputy Ambassador Manuel Muller described the signing as part of the ongoing financial cooperation between the two nations and highlighted the significance of tourism and conservation for economic growth, particularly given the high number of German tourists visiting Tanzania.
KfW Director Christoph Tiskens noted that the agreement marks another milestone in the decades-long partnership between the two countries and stressed the importance of local bank participation to foster the development of bankable water projects.
He added that the conservation project aims to boost economic opportunities and employment by establishing value chains for communities living near protected ecosystems, preserving Tanzania’s unique biodiversity.
Germany and Tanzania have maintained strong development ties since the 1960s, with a focus on sustainable economic growth, environmental protection, and improved access to basic services.
