Photo: AFD
On the sidelines of this year's One Ocean Summit in Brest, H.E. Ms Samia Suluhu Hassan, President of the United Republic of Tanzania, H.E. Mr Franck Riester, Minister Delegate in charge of Foreign Trade and Attractiveness, and Mr Rémy Rioux, Chief Executive Officer of the French Development Agency (AFD), presided over the signing of three financing agreements between France and Tanzania, totalling EUR 259 million.
In order to facilitate access to finance for the agricultural sector in Tanzania, AFD and the Tanzanian Ministry of Finance and Planning agreed upon a EUR 80 million sovereign loan from AFD, together with a EUR 1 million grant for technical assistance. This line of credit will aim to strengthen the Tanzania Agricultural Development Bank (TADB) in its role as a catalyst for financing the agricultural sector. As a public development bank, TADB's mandate is to finance and catalyse private financing for the agricultural sector. This support will enable it to increase the financial inclusion of the sector's stakeholders (especially women and the youth) and to promote better environmental and social practices. Through access to adapted financial and non-financial services, small-scale farmers and agribusiness SMEs will ultimately see their incomes and livelihoods increase. In support to Dar Es Salaam's sustainable urban mobility development policy, AFD also signed a EUR 178 million sovereign loan agreement with the Tanzanian government. This loan will finance the fifth phase of the city's Bus Rapid Transit system, which will reduce carbon emissions from the sector, curb pollution and facilitate access to services for the population. The economic capital of Tanzania is the third fastest growing city in Africa and is expected to become a megalopolis of more than 10 million inhabitants by 2030, according to the United Nations.
According to Rémy Rioux: “We are proud to sign both our first agricultural sector financing with Tanzania and our largest bilateral funding agreement, thanks to this sustainable urban development loan. Both these significant agreements bring the portfolio of projects supported by AFD Group in Tanzania to a total of 1 billion euros.
They are also significant from the point of view of our shared values: in line with the last Finance in Common summit, the partnership with TADB will make it possible to reach and include the largest possible number of stakeholders in the agricultural sector, targeting women and young people in particular, while promoting better agricultural practices, in line with AFD's 100% Paris Agreement commitment. As for the financing of a BRT line, which will improve access to socio-economic services in the capital while reducing the sector's carbon footprint, it is in line with a fair transition trajectory and with our 100% social cohesion commitment.”
This article was originally published by AFD.
