By Faridat Salifu
The Tanzanian government, recently issued $68.3billion green bond to finance green and sustainable development in the country.
The green bond offered by CRDB Bank with the backing of the International Finance Corporation aims to help Tanzania achieve its climate financing goals and is in Tanzanian shillings.
CRDB Bank Plc is an African bank and a leading Financial Services Provider in Tanzania with current presence in Tanzania and Burundi, East Africa.
According to World Bank estimates, the East African nation will require $19.3 billion in climate finance by 2030.
The CRDB Bank, which is the biggest commercial bank in the nation, had earlier issued $4.6billion in assets in 2022.
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“This is the first tranche of the $300 million multi-currency medium-term note programme under the new Green, Social and Sustainability Bond Framework aimed at financing green, social, and sustainable development projects.”
“This tranche seeks to improve the livelihoods and quality of life of our citizens through the sustainable development agenda by transforming the nation’s climate finance processes.
“It addresses various climate challenges. In specifics, the money raised from the sale of this Tanzanian shilling bond will be utilized to fund climate-smart agriculture as well as projects related to water, forestry, renewable energy, and green building throughout the nation”, CRDB Bank Chief Executive Officer Abdulmajid Mussa Nsekela said.
Reports say the World Bank’s private sector lending division, the International Finance Corporation (IFC), is supporting the Tanzanian government with a $20million subscription.
According to the World Bank Group subsidiary, “a performance-based incentive from the UK-SFI Market Acceleration Programme for the Green Building Programme is included in IFC’s support as part of the deal to help cover the costs associated with greening affordable housing developments in Tanzania.
Green buildings will get at least 40% of the IFC’s bond investment under the UK-SFI scheme.
Currently, donors provide Tanzania with the majority of its climate funding. However, in light of the climate emergency, the private sector is being urged to act more widely throughout the continent.
