The Government of Tanzania has renewed its commitment to collaborate closely with the International Finance Corporation (IFC) to boost private sector investment, expand infrastructure, and accelerate the National Energy Transformation Plan under National Development Vision 2050 (DIRA 2050).
Finance Minister Ambassador Khamis Mussa Omar (MP) praised IFC’s long-standing support for Tanzania’s private sector during a meeting with IFC East Africa Regional Director, Ms. Mary Porter Peschka. He said the partnership remains key to achieving the country’s long-term development goals.
Ambassador Omar noted IFC’s vital role in mobilizing financing, fostering innovation, and strengthening institutional capacity.
He explained that implementing DIRA 2050, estimated to cost about USD 1 trillion, will rely heavily on private sector investment, expected to cover over 70 percent of the total costs.
“Sustained collaboration with IFC is crucial to mobilize resources, stimulate private sector participation, and ensure Tanzania achieves its socio-economic transformation,” Ambassador Omar said.
The minister also highlighted milestones under the National Energy Mission (Mission 300 Tanzania Energy Compact), aimed at improving access to electricity and clean energy by 2030.
Between January 2025 and January 2026, electricity access increased from 78.4% to 85.5%, household grid connections rose from 46% to 52.1%, and renewable energy’s share grew from 61.8% to 69%.
Despite progress, Ambassador Omar stressed the need for more investment, especially to expand rural energy services and promote clean cooking solutions.
He urged IFC to leverage its global expertise to fund strategic energy projects, including the Kikonge, Ruhudji, and Rumakali hydropower plants, as well as solar, wind, and geothermal initiatives.
He also emphasized government efforts to attract private investment through Public-Private Partnerships (PPPs).
The Public-Private Partnership Centre (PPPC) has compiled a national pipeline of 113 projects across transport, trade, employment, and agribusiness. Ten key projects are expected to start in the 2026/27 financial year, requiring preparatory funding.
“Strengthening our institutions and aligning PPP projects with international standards will boost investor confidence and accelerate project delivery,” Ambassador Omar said.
Ms. Peschka reaffirmed IFC’s commitment to partner with Tanzania in promoting private sector growth across business, energy, agribusiness, and investment sectors, improving livelihoods and the national economy.
According to IFC’s 2025 report, the institution invested around USD 197.4 million in the first half of fiscal 2026 through short-term loans to stimulate private sector activity.
Total IFC investments in Tanzania now reach USD 315.9 million, with 74% directed to financial services and 26% to manufacturing, agribusiness, and other services.
IFC also supports the Dar es Salaam Bus Rapid Transit (BRT) project through PPP advisory services and implements a USD 6.3 million National Gender Program through 2028 to increase women’s participation in business activities.
The meeting brought together senior officials from the Ministry of Finance, Ministry of Energy, PPPC, and IFC representatives.
