Germany has committed approximately €27.3 million (Sh78.58 billion) in development aid to Tanzania through the signing of three cooperation agreements targeting the water sector, climate resilience, and biodiversity conservation.
The funding, formalized in Dar es Salaam on Tuesday, will support three strategic initiatives: a performance-based water infrastructure program, a feasibility study for climate adaptation, and a sustainable conservation project in key protected areas.
Tanzania’s Permanent Secretary in the Ministry of Finance, Dr. Natu Mwamba, confirmed the allocation, noting that €10.6 million (Sh30.60 billion) will be channeled to incentivize local water authorities to secure commercial loans for expanding water infrastructure.
Under the results-based financing model, utilities meeting specific benchmarks will be eligible for grants covering up to 50% of project costs, capped at €1 million.
An additional €0.72 million (Sh2.08 billion) will fund feasibility studies to assess climate resilience interventions, particularly in Tanzania’s southern regions.
The focus is on supporting long-term water security as climate variability increasingly threatens vulnerable communities.
The largest portion €15 million (Sh45.9 billion) is earmarked for a conservation program aiming to protect biodiversity while delivering socio-economic benefits to local communities. The initiative targets the Serengeti ecosystem and the Katavi-Mahale wildlife corridor, where pressures from human activity and environmental degradation are rising.
“These projects are not only about infrastructure. They are about building institutional capacity, enabling local ownership, and ensuring long-term sustainability,” Dr. Mwamba said at the signing ceremony.
The climate adaptation component will support water and sanitation systems in towns such as Liwale, Michiga, Likokona, Nyengedi, Mtua, Longa, and Kiwalala, areas historically underserved and increasingly vulnerable to climate stress.
German Acting Ambassador to Tanzania, Manuel Muller, described the agreements as a step toward unlocking domestic financing opportunities for water infrastructure through collaboration with local banks.
“In a fast-growing economy like Tanzania, traditional financing is not enough. Innovative mechanisms such as this create bankable projects that meet financial standards while addressing development needs,” he stated.
Muller added that the program would stimulate private sector participation, especially within the banking sector, which is expected to play a growing role in infrastructure financing.
“This second phase will enhance the ability of utilities to access commercial financing, and this time we are applying the lessons learned from the first phase,” she said.
The grant comes as Tanzania faces increasing infrastructure demands due to rapid population growth and urbanization, with the water and conservation sectors under significant pressure.
Germany remains one of Tanzania’s key development partners, supporting programs in health, gender equality, environmental protection, and public financial management. The latest funding reaffirms Berlin’s commitment to advancing sustainable and inclusive development in the region.