Dar es Salaam. In a significant move to boost its forestry and energy sectors, Tanzania has inked four major financial agreements with the French Government, represented by the French Development Agency (AFD Group).
The total value of the agreements amounts to €118.8 million (approximately Sh323.4 billion), marking a major step in deepening bilateral ties between the two nations.
The agreements were signed on Friday, December 6, 2024, at the Ministry of Finance’s Small Offices in Dar es Salaam.
On behalf of the Tanzanian government, the event was graced by the Minister for Finance, Dr Mwigulu Nchemba, and representing France were the Deputy Ambassador to Tanzania, Mr Axel-David Guuillon, and the AFD’s Resident Director, Ms Celine Robert.
Outlining the specifics of the agreements, Dr Nchemba revealed that the first deal involved a concessional loan of €75.9 million earmarked for the second phase of the solar energy project in Kishapu District, Shinyanga Region.
“This project is expected to significantly enhance the country’s renewable energy capacity, bringing clean, affordable solar power to a critical region,” he underscored.
Building on this, Dr Nchemba provided further details on the project’s potential, stating that it would generate a total of 150 Megawatts.
The first phase, currently under implementation, is set to produce 50 Megawatts, while the second phase, for which the contract has been signed, will contribute an additional 100 Megawatts, bringing the total to 150 Megawatts.
He added: “Integrating 150 Megawatts into the national grid will reduce reliance on hydropower, which is increasingly vulnerable to the impacts of climate change.”
This project, he went further to say, will also ensure a more reliable energy supply in Shinyanga Region, which is of strategic economic and social importance, particularly due to its large and small-scale mining activities.
Dr Nchemba stated that the second agreement, worth €39.9 million, is for the development of forest plantations and the conservation of mangrove reserves.
This, he expounded, aimed at expanding tree planting efforts, improving the quality and quantity of tree seeds, and enhancing the management of those seeds.
He added that the project would strengthen seed collection centers and establish modern tree nurseries, as well as improve the management of mangrove forest reserves, enhance environmental conservation, and contribute to boosting tourism and improving the livelihoods of local communities.
The third agreement is a special €2 million grant dedicated to the conservation of mangrove reserves, while the fourth is a €1 million grant to support a gender action plan under the Tanzania Electric Supply Company (TANESCO).
This gender-focused initiative is part of a broader solar energy development project, aligning with efforts to empower women in Tanzania’s energy sector.
“This is a continuation of our strong partnership, which has been demonstrated through various projects funded by concessional loans from the French Government via AFD,” said Dr Nchemba.
He said the French Government, through AFD, has financed various projects across sectors such as Energy, Water, Transport, and Agriculture, some of which are ongoing, while others have already been completed.
Speaking at the signing ceremony, Deputy Ambassador Guuillon emphasized that these agreements are the direct result of the Paris Declaration, which aims to strengthen the diplomatic and economic cooperation between Tanzania and France.
This comes on the heels of recent discussions between Tanzanian President, Dr Samia Suluhu Hassan, and French President, Mr Emmanuel Macron, highlighting the growing partnership between the two nations.
Ms Celine Robert, AFD’s Resident Director, underscored her organization’s commitment to continuing its support for Tanzania’s development, particularly in financing high-impact projects that will directly benefit the Tanzanian people.
In response, Tanzanian government officials, including the Deputy Minister for Natural Resources and Tourism, Mr Dunstan Kitandula, and the Deputy Minister for Energy, Ms Judith Kapinga, expressed their gratitude for the funds.
They pledged to ensure the resources are utilized efficiently and as intended, reinforcing their commitment to sustainable development and progress in the country.
This landmark partnership is set to pave the way for more collaborative projects between Tanzania and France, positioning both nations for greater prosperity and environmental sustainability.
