Tanzania has secured about $6.7 million in grants to prepare three major infrastructure projects, including electricity links with Malawi and a proposed Standard Gauge Railway connection with Burundi, the Finance Minister has said.
Finance Minister Ambassador Khamis Mussa Omar said the support from the Multilateral Cooperation and Development Finance (MCDF) was helping Tanzania develop projects that could attract financing and move from proposals to implementation.
He made the remarks in Doha, Qatar, during an MCDF session involving finance ministers who serve as governors of the Asian Infrastructure Investment Bank (AIIB), held on the sidelines of the bank's 11th Annual Meeting.
Tanzania joined MCDF as an observer in July last year and has since benefited from grants channelled through coordinating institutions, including the African Development Bank (AfDB), for preparation of three strategic projects.
They include the 400-kilovolt Tanzania-Malawi power interconnection, the Songwe Basin power generation and transmission project, and the Tanzania-Burundi Standard Gauge Railway project.
The projects are part of wider efforts to strengthen regional power connectivity, transport links and economic integration, while creating infrastructure capable of attracting long-term investment.
“Tanzania appreciates the contribution of the fund in preparing quality projects that are capable of attracting investment,” Ambassador Omar said.
The minister said the support comes as Tanzania implements its Fourth Five-Year Development Plan for 2026/27-2030/31, which identifies energy, transport and digital technology as key areas for economic transformation.
For Tanzania, better-prepared infrastructure projects could help address one of the major challenges facing large public investments: securing financing for projects that require substantial capital before construction can begin.
Ambassador Omar said Tanzania would continue strengthening cooperation with MCDF, AIIB and other development partners as it supports the fund's new 2027-2031 strategic plan.
He also called for stronger regional cooperation, higher standards in project preparation and greater attention to climate resilience.
AIIB President Zou Jiayi said MCDF was increasingly important in helping developing countries convert infrastructure needs into projects that could secure financing.
She described the fund as a strategic partner rather than simply a trust fund, saying it provides technical assistance and helps build the capacity needed to prepare bankable projects.
Zou said MCDF was also adapting its model to changes in development finance by considering areas such as bridge financing, smart housing and digital education.
She said the changes reflected the growing contribution of emerging economies to development finance and the expanding role of South-South cooperation.
AIIB, she said, would continue supporting MCDF in its next phase beginning in 2027, with emphasis on transparency and disciplined use of resources contributed by member countries and other development partners.
The support comes as Tanzania seeks to deepen regional infrastructure links, particularly in electricity and transport, which could expand cross-border trade and improve access to energy and markets if the projects progress to construction.