Access to clean and safe water remains a key priority for improving the livelihoods of Tanzanians, supporting economic activities and strengthening public health.
However, expanding water infrastructure requires substantial financial resources, prompting the government to encourage innovative financing approaches beyond traditional funding sources.
Through Public-Private Partnerships (PPP), the government is opening opportunities for private investors, development partners, non-governmental organisations and other stakeholders to support water projects, including construction of water supply systems and drilling of boreholes.
One institution that has demonstrated the potential of alternative financing is the Tanga Urban Water Supply and Sanitation Authority (Tanga UWASA), which has successfully used a Green Bond to mobilise funds for water infrastructure development.
Through the initiative, Tanga UWASA raised TZS 53.12 billion from citizens and various stakeholders. The funds are being invested in expanding water supply networks in Tanga City and the districts of Mkinga, Muheza and Pangani.
The Green Bond model allows investors to support public infrastructure projects while receiving returns on their investment, creating a partnership between citizens, financial markets and public service providers.
The initiative comes at a time when water authorities are seeking sustainable solutions to bridge funding gaps and speed up the implementation of projects.
Experts argue that depending only on government allocations may delay some development projects, while alternative financing can provide additional resources to respond to growing demand.
Tanga UWASA’s experience is now being viewed as an example for other water authorities looking for innovative ways to finance projects and improve service delivery.
The authority was listed on the Dar es Salaam Stock Exchange (DSE) on May 16, 2024, through its water infrastructure and environmental conservation Green Bond.
Speaking during the listing ceremony, Minister for Water Jumaa Aweso said innovative financing instruments such as Tanga UWASA’s bond support government efforts to accelerate access to quality water services.
He urged other water authorities to learn from the initiative and explore similar financing models to expand services to more citizens.
The success of the Green Bond has also attracted interest from other parts of the country. Recently, Zanzibar Minister for Water, Energy and Minerals Nadir Abdullatif visited a major project financed through the bond to learn how alternative financing can support water infrastructure development.
Tanga UWASA Managing Director Engineer Geoffrey Hilly said cooperation with the private sector has played a major role in advancing water projects, adding that the authority will continue working with investors and stakeholders to improve service delivery.
The initiative aligns with the government’s broader goal of increasing access to reliable water services and supporting President Dr Samia Suluhu Hassan’s agenda of reducing the burden of water collection among households.
Tanga UWASA’s Green Bond demonstrates how financial innovation can complement public investment and create new opportunities to deliver sustainable water solutions for communities.
