Dar es Salaam. Tanzania and the Federal Republic of Germany have signed three grant agreements worth €25.68 million (approximately Sh78.6 billion) to support projects in the water and natural resources sectors.
The agreements were signed on Tuesday July 8, at the ministry of Finance sub-offices in Dar es Salaam, marking a significant milestone in bilateral development cooperation.
Signing on behalf of the Tanzanian government was the Permanent Secretary in the ministry of Finance, Dr Natu El-Maamry Mwamba, while the German side was represented by Deputy Ambassador to Tanzania, Mr Manuel Muller, and the director for Eastern Africa and the African Union at the German Development Bank (KfW), Mr Christoph Tiskens.
Dr Mwamba said the grants will finance three key initiatives, beginning with the Investment Financing Facility – Output Based Approach (IFF-OBA), which has been allocated €10 million (Sh30.6 billion).
The programme is designed to incentivise water utilities across the country to secure loans from commercial banks for investment in infrastructure.
Under this arrangement, eligible utilities will receive grants of up to 50 percent of the project cost, not exceeding €1 million, upon meeting set criteria.
A second agreement, valued at Sh2.08 billion, is earmarked for a feasibility study on the Climate Resilient Towns project, a preparatory step towards improving the adaptability of urban areas to climate change impacts.
The third grant, totalling €15 million (Sh45.9 billion), will go towards the implementation of a natural resources conservation initiative dubbed the Sustainable Development of Protected Areas Ecosystems Project.
The project targets the Serengeti and Katavi-Mahale National Parks, aiming to enhance environmental conservation and community development in surrounding areas.
“These projects are intended to enhance public service delivery, improve water access, protect natural resources and ultimately contribute to increased domestic revenues and sustainable livelihoods,” said Dr Mwamba.
He further expressed the government’s commitment to ensuring the full and effective implementation of the projects and affirmed Tanzania’s resolve to deepen cooperation with Germany under the leadership of President Samia Suluhu Hassan.
Speaking at the event, Mr Muller described the agreements as a continuation of Germany’s strong development partnership with Tanzania.
“I am delighted by today’s signing. These projects will not only strengthen water infrastructure and conservation efforts but also support tourism, a key economic pillar for Tanzania. Germany remains a committed and reliable partner,” he said.
Mr Tiskens, for his part, hailed the agreements as a major step forward in the decades-long cooperation between the two nations, which dates back to the 1960s.
He underscored the transformative potential of the second phase of the IFF-OBA facility in unlocking bankable projects through Tanzania’s local financial institutions.
“This innovative model will improve access to financing for water authorities and stimulate greater private sector involvement,” said Mr Tiskens.
He added that the conservation initiative will also establish value chains that benefit communities living adjacent to protected areas, stimulating local economies and creating jobs.
Germany remains one of Tanzania’s most prominent development partners, supporting interventions in various sectors including health, education, governance, water, biodiversity, and climate resilience.
