The government has secured a concessional loan of 55.1 million US dollars from Hungary to finance the implementation of the Biharamulo Water Supply Project in Kagera Region, a move expected to significantly improve access to clean and safe water for residents.
The loan agreement was signed in Dodoma by the Permanent Secretary in the Ministry of Finance, Dr Natu El-maamry Mwamba, on behalf of Tanzania, witnessed by Hungary’s Ambassador-designate to Tanzania, Katalin Nyirati.
Speaking after the signing ceremony, Dr Mwamba said the development marks an important milestone in implementing the long-awaited project aimed at strengthening water services in Biharamulo District.
He explained that the project implementation agreement had earlier been signed by Hungary’s State Secretary responsible for bilateral relations at the Ministry of Foreign Affairs and Trade, Boglárka Illés, leaving Tanzania to complete the signing process to unlock the loan.
With the agreement now concluded, Tanzania will access the financing through the Hungarian Export-Import Bank to begin implementation of the water supply project.
Dr Mwamba said the project is expected to greatly improve access to reliable and safe water services for thousands of residents in Biharamulo, supporting the government’s broader agenda of expanding social services and improving living standards.
He added that the initiative aligns with the country’s key development frameworks, including the Third Five-Year National Development Plan 2021/22–2025/26 and the long-term Tanzania Development Vision 2025, as well as the upcoming Tanzania Development Vision 2050.
Dr Mwamba noted that while concessional loans remain an important source of development financing, there is also a need to broaden cooperation with Hungary to include grants, particularly in areas such as education, capacity building and other social sectors.
Such support, he said, would help deliver broader and more sustainable benefits to citizens.
He reaffirmed Tanzania’s commitment to strengthening bilateral cooperation with Hungary under the leadership of President Samia Suluhu Hassan, noting that the partnership continues to create new opportunities for development.
Dr Mwamba also congratulated Ambassador Nyirati on her appointment, saying it reflects Hungary’s continued commitment to deepening its long-standing relations with Tanzania. He assured the ambassador of the government’s full cooperation in advancing bilateral ties.
For her part, Ambassador Nyirati said the relationship between Tanzania and Hungary spans more than six decades, describing Tanzania as a reliable and valued partner.
She said Hungary remains committed to expanding cooperation with Tanzania in areas of shared interest, including water, education, agriculture, technology and political engagement.
According to the ambassador, the exchange of knowledge and expertise between the two countries will help improve efficiency and drive progress in these sectors.
She also pointed out that as the global economy faces multiple challenges, stronger partnerships between countries such as Tanzania and Hungary will be vital in strengthening economic resilience.
Meanwhile, the Permanent Secretary in the Ministry of Water, Eng Mwajuma Waziri, welcomed the loan agreement, saying residents of Biharamulo have long been waiting for the implementation of the project.
She said the signing of the agreement signals renewed hope for the community, as the project is expected to play a critical role in addressing water supply challenges and supporting local development.
