The government has lauded NMB Bank for its groundbreaking move to launch a special fund of TSh 100 billion aimed at financing distributors and suppliers of clean cooking energy to Tanzanians, an initiative that underscores the collaboration between the public and private sectors in driving sustainable development and advancing Tanzania's National Strategy for the Adoption of Clean Cooking Energy (2024-2034).
Speaking at the fund's launch over the weekend, Deputy Prime Minister Dr. Doto Biteko emphasized the government’s readiness to support NMB's initiative, stating it aligns with the nation's broader clean energy goals.
“On behalf of the government and the Ministry of Energy, I sincerely thank NMB for this visionary idea, and we are fully prepared to support it to ensure its success,” Dr. Biteko remarked.
He further highlighted how providing capital to agents and distributors of clean cooking energy will promote access to this resource in both urban and rural areas, significantly enhancing adoption rates.
“This initiative deserves immense praise,” he added, “especially given that the bank could have opted to invest this substantial amount in other ventures for greater financial returns. Yet, the decision to channel these funds into clean cooking energy reflects the bank’s genuine commitment to sustainable development in our country.”
Dr. Biteko elaborated on the numerous benefits of clean cooking energy, emphasizing its potential to improve health, protect the environment, and boost economic efficiency, lauding President Samia Suluhu Hassan for championing clean energy initiatives both locally and globally, underscoring the significance of NMB’s contribution to this national agenda.
“We all understand that a major obstacle to the widespread use of clean cooking energy, beyond a lack of capital, is insufficient public awareness. NMB’s approach to providing education alongside financing is commendable and will undoubtedly foster the adoption of clean energy solutions,” Dr. Biteko asserted.
He extended the government’s gratitude to NMB for its broader contributions to national development, such as supporting schools, health facilities, and reforestation efforts.
These initiatives align with the government’s commitment to sustainable growth and environmental conservation. The launch of the clean energy fund coincides with Tanzania hosting the Mission 300 Summit on January 27-28, a high-profile event aimed at expanding clean energy access to 300 million Africans.
With over 25 presidents and 60 finance and energy ministers attending, the summit spotlights Tanzania’s leadership in clean energy advocacy, with President Samia Suluhu Hassan as the host.
NMB Bank’s Chief Executive Officer, Ruth Zaipuna, highlighted the bank’s motivation for establishing the fund, emphasizing its role in driving sustainable environmental practices, improving public health, and supporting the attainment of the United Nations’ Sustainable Development Goals (SDGs) by 2030.
“This initiative aims to ease access to clean energy solutions for Tanzanians, recognizing the importance of aligning with the government’s National Strategy for Clean Cooking Energy,” Zaipuna noted.
She referenced alarming statistics from the Clean Cooking Conference held in Paris in May 2024, which revealed that over 1.2 billion Africans still lack access to clean cooking energy, relying instead on harmful alternatives such as charcoal and firewood.
“The consequences of this reliance are devastating, with Africa losing over 600,000 women and children annually due to health complications from toxic smoke. In Tanzania alone, 33,000 people die each year from the effects of unclean cooking energy,” Zaipuna explained.
She reiterated the need for collective action to address this urgent challenge and commended NMB’s proactive approach to fostering solutions.
Zaipuna outlined the fund’s structure, which includes low-interest loans capped at TSh 1 billion per borrower, with a favorable interest rate of 1% per month (equivalent to 12% annually).
The primary beneficiaries will be distributors and agents of gas cylinders and stoves, which currently represent the most accessible clean energy solutions. She stressed that this financing initiative would catalyze the growth of clean energy distribution networks across Tanzania, particularly in underserved rural areas.
During the event, Finance Minister Dr. Mwigulu Nchemba commended NMB’s unwavering support for government efforts to achieve sustainable development. He highlighted the bank’s dedication to empowering Tanzanians, including women entrepreneurs and small business owners.
“NMB’s initiative is a testament to its commitment to national progress, and its efforts will undoubtedly help bridge the energy access gap for millions of citizens,” Dr. Nchemba stated.
The Clean Cooking Energy Fund represents a significant milestone in Tanzania’s journey toward sustainable energy adoption.
By addressing both financial and educational barriers, NMB Bank is not only championing environmental conservation but also empowering communities to embrace healthier and more sustainable lifestyles.
As the nation prepares to showcase its leadership in clean energy at the Mission 300 Summit, this bold move by NMB serves as a shining example of how public-private partnerships can drive transformative change.
The fund’s impact will undoubtedly resonate across Tanzania, setting a precedent for other stakeholders to follow suit.
