Norway and UNCDF signed a $7.4 billion deal for climate resilience in Tanzania. The partnership focuses on local solutions to address climate challenges. The EU commits to aiding Africa’s transition to cleaner energy at the African Climate Summit.
According to Business Insider Africa, the agreement was reached in order to aid the East African country in strengthening the country’s climate change resistance and the government’s ability to plan budgets and report on climate actions. The deal will support UNCDF’s work to promote inclusive financial access and sustainable infrastructure in Tanzania.
The funds will be used to support UNCDF's Tanzania Inclusive Finance for Growth (TIFG) program, which aims to increase access to financial services for low-income people and businesses in Tanzania. The program will also support the development of sustainable infrastructure, such as renewable energy and water projects.
The signing ceremony was held in Dar es Salaam, Tanzania, and was attended by the Minister of Finance of Tanzania, Dr. Mwigulu Nchemba, the Norwegian Ambassador to Tanzania, Mr. Tore Gjerstad, and the Executive Secretary of UNCDF, Ms. Reena Swarup.
In his remarks at the ceremony, Dr. Nchemba said that the deal was a “major milestone” in Tanzania’s efforts to achieve financial inclusion and sustainable development. He thanked Norway for its support and said that the funds would be used to “make a real difference in the lives of Tanzanians.”
Ms. Swarup said that the deal was a "significant vote of confidence" in UNCDF's work in Tanzania. She said that the funds would help UNCDF to "scale up our impact and reach even more people."
The $7.4 billion deal is the largest single investment in UNCDF's history. It is a testament to the importance of inclusive finance and sustainable infrastructure for development. The deal will help UNCDF to achieve its goal of leaving no one behind.
The $7.4 billion deal contains additional elements that are important. First, the funds will be disbursed over a period of five years. Second, the UNCDF will work with the government of Tanzania and other partnerships to implement the program, and third; the program is expected to create jobs, boost economic growth, and reduce poverty in Tanzania.
The deal is a major win for UNCDF and for Tanzania. It will help to accelerate progress towards the Sustainable Development Goals in Tanzania.