DAR ES SALAAM: TANZANIA is putting a 12 billion US dollar (about 31.67tri/-) climate financing gap on the table, calling on global investors and development partners to help fund projects that will drive climate resilience and sustainable economic growth.
The country is seeking investment across key areas including renewable energy, sustainable agriculture, green minerals and the blue economy.
Minister for Finance Ambassador Khamis Mussa Omar said Tanzania requires 19.3 billion US dollars (about 50.9tri/-) to implement its climate targets under the Nationally Determined Contribution (NDC), leaving a financing shortfall of about 12 billion US dollars (31.67tri/-).
Speaking yesterday at the opening of the Tanzania Climate Finance Roundtable 2026 in Dar es Salaam, Amb Omar said the gap should also be viewed as an opportunity for international investors and financial institutions to participate in projects that strengthen the country’s resilience to climate change while generating economic opportunities.
He said Tanzania is ready to work with global partners through concessional financing, guarantees, blended finance and other innovative instruments to reduce investment risks and attract private capital.
“We invite the World Bank Group, including the African Finance Corporation (AFC) and the Multilateral Investment Guarantee Agency (MIGA), to work with us on de-risking tools that can attract private investors into renewable energy, resilient infrastructure and sustainable development,” said Amb Omar.
He noted that Tanzania’s investment proposition is supported by its large population, young workforce, strategic location along the Indian Ocean, abundant natural resources and macroeconomic stability.
Amb Omar said the government is also strengthening the domestic financial market to mobilise capital for sustainable investments, including exploring a possible sovereign green, social and sustainability-linked bond.
He called for faster access to climate financing, noting that lengthy approval processes and the high cost of capital in Africa continue to constrain the scaling up of green investments.
“Let us move from promises to delivery and from commitments to results. Tanzania is ready to lead, ready to partner and ready to deliver,” he said.
Permanent Secretary in the Ministry of Finance, Dr Natu Mwamba, said Tanzania needs to strengthen its capacity to access climate finance and develop bankable projects capable of attracting more investment for climate-resilient development.
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Dr Mwamba said the challenge is not only mobilising more resources, but also overcoming institutional and procedural barriers that slow access to financing.
“Better coordination of available resources is necessary to ensure climate funds are effectively channelled into projects aligned with national development priorities,” she said.
Dr Mwamba also stressed the need to strengthen institutional capacity to identify, prepare and present projects capable of attracting both public and private climate financing.
Assistant Director and IMF Mission Chief for Tanzania, Nicolus Blancher, said the country’s strong fiscal, monetary and financial stability provides an important foundation for attracting climate finance.
He said IMF-supported reforms in climate governance, disaster risk management, climate-responsive public investment and financial sector climate risk management are helping to reduce risks and create conditions for increased climate investment.
Mr Blancher said the priority now is to translate climate finance discussions into concrete programmes with clear ownership and timelines.
Regional Practice Director at the World Bank Group, Anna Wellenstein, said Tanzania faces a major climate financing gap, with only about a third of the nearly 20 billion US dollars (about 52.7tri/-) identified under its climate plans having secured funding sources.
She called for stronger project prioritisation and preparation, noting that financing instruments should be matched to the risks, revenues and public value of individual projects.
Ms Wellenstein said concessional finance remains important for public goods, vulnerable communities and early-stage project preparation, while private capital can play a greater role in projects with viable revenue models.
