Tanzania

Femme s'approvisionnant en eau, Tanzanie — © Ania Gruca pour l'AFD

Tanzania is the largest country in East Africa and has one of the biggest and youngest populations on the continent. The third largest economy in the sub-region, the country is experiencing dynamic growth that remained relatively unaffected by the Covid 19 pandemic, with an average growth of 6.4% from 2010 to 2021. The country achieved Middle Income Country (MIC) status in July 2020 and has been experiencing a political revival since early 2021 with the arrival in power of President Samia Suhulu Hassan. Nevertheless, the country still faces a number of challenges to reduce poverty levels (160th in the world HDI), develop access to essential services and sustainably exploit its natural resources for a shared and sustainable prosperity model.

Context

Tanzania is the largest country in East Africa bordering the Indian Ocean and the most populous with more than 61 million inhabitants and a strong demographic growth. Its geographical location - with borders shared with eight countries and a 750-kilometer long coastline - makes it a true regional hub. It is also one of the youngest African states: 45% of its population is under 15 years old.

Tanzania has experienced steady economic growth for over 20 years, mainly due to its stable political situation, the diversity of its productive sectors and its strategic position at the crossroads of Africa and the Indian Ocean. The country also has an exceptional natural heritage and resources.
However, poverty persists, especially in rural areas where 65% of the population lives. Nearly one out of every two inhabitants lives below the poverty line, and many have no access to essential services (water, sanitation, energy, digital access).

AFD has been active in the country since 1993 through its subsidiary Proparco based in Nairobi, Kenya, and has been present in Tanzania since 2008. It operates through grants and loans to the State and the private sector, as well as grants to civil society, to promote sustainable, balanced and inclusive development. Its subsidiary Expertise France is also active in the country.

AFD's Tanzania office is directly attached to the East Africa regional office in Nairobi.

Our approach

"AFD in Tanzania: share growth and reduce poverty"

Despite significant progress, only 55% of the Tanzanian population has access to basic water services, 30% to sanitation services and 38% to electricity. AFD finances the development of these basic services (water, sanitation, energy, health) throughout the country, with a focus on the most vulnerable populations.

For more than 15 years, several water and sanitation projects in cities around Lake Victoria have provided 1 million people with better quality water and sanitation services.
In the energy sector, AFD's financing aims to extend access to electricity to 95,000 rural households.
In the health sector and in partnership with the Aga Khan Health Service, AFD is supporting a cancer control project in Dar es Salaam and Mwanza to improve detection and treatment for 1.7 million people and more than 500 health staff.

AFD aims to support public investments and private sector participation in the development of infrastructure that is essential for industrialization and regional integration (in the areas of energy, digital technology, etc.). It also works with the banking sector to enable it to support entrepreneurship and improve the alignment of its business with the SDGs.

In the energy sector, AFD finances projects to improve the transmission network, including the interconnection between Tanzania and Zambia, as well as renewable energy production infrastructure (solar and hydroelectric).
Through an 80 million euro line of credit, AFD is helping the Tanzania Agricultural Development Bank (TADB) promote access to agricultural finance and the emergence of a sustainable agribusiness based for smallholder farmers.
Within the AFD Group, Proparco works with the main Tanzanian commercial banks: for example, NMB Bank has contracted a 50 million euro loan to support the local private sector and promote the financial inclusion of VSEs, particularly those owned by women.

In the energy sector, AFD finances projects to improve the transmission network, including the interconnection between Tanzania and Zambia, as well as renewable energy production infrastructure (solar and hydroelectric).
Through an 80 million euro line of credit, AFD is helping the Tanzania Agricultural Development Bank (TADB) promote access to agricultural finance and the emergence of a sustainable agribusiness based on small farms.
Within the AFD Group, Proparco works with the main Tanzanian commercial banks: for example, NMB Bank has contracted a 50 million euro loan to support the local private sector and promote the financial inclusion of VSEs, particularly those owned by women.

AFD supports the projects of NGOs active in the country in the fields of agriculture, biodiversity, health, human rights and microfinance.
Among our partners in the field: Plan International; Doctors of the World (MDM); CARI, Island of Peace, SMILO (The Small Islands Organisation), ATD Fourth World or AVSF.