Dar es Salaam, May 2023 – The ambitious renewable energy targets set by Tanzania for 2025 are witnessing a momentous push, with the Tanzania Association of Microfinance Institutions (TAMFI) reporting a surge in support from financial institutions. This endeavor represents a significant stride in the nation’s commitment to sustainable energy.
Dr. Samia Suluhu Hassan, Tanzania’s President, has charted an audacious course with the aim to harness 6,000MW of electricity from renewable sources by 2025. The path to this milestone necessitates a collaborative effort, especially from financial institutions. “The heightened support from Tanzanian financial institutions in financing renewable energy solutions is a beacon of hope,” said TAMFI CEO, Winnie Terry. She expressed optimism that a greener Tanzania, primarily powered by renewables like solar, is rapidly transitioning from a mere dream to a tangible reality.
TAMFI, the non-profit pillar for microfinance in Tanzania, has actively championed the cause of decentralized renewable energy (DRE) financing. The fruits of their labor are now evident, with many of their members, such as Enokwe Finance Ltd, Samekaya SACCOS, and Maendeleo Bank, to name a few, beginning to finance end-users for renewable energy solutions.
These developments have been accelerated by a project backed by the C.S. Mott Foundation, which envisions a more inclusive financial ecosystem for Tanzanian end-users and businesses. “The avenue to finance is reshaping the renewable energy landscape in Tanzania. I foresee renewable energy financing becoming a mainstream norm soon,” emphasized Terry.
Such initiatives resonate deeply with TAMFI’s projects like “Energy Access: Building an Innovative Financial Ecosystem for Enterprises and End Users.” Their aim? Raising awareness about renewable energy financing, which in turn propels Tanzania’s economic growth, poverty alleviation, and eco-sustainability.
Tanzania, like its Sub-Saharan African counterparts, grapples with the monumental task of supplying reliable electricity to its citizens. With a staggering 570 million people in sub-Saharan Africa without electricity, the urgency for a solution is palpable. In Tanzania, many rural inhabitants still live off the grid.
TAMFI staunchly believes in the potential of renewable energy. They envision these sources not just as mere energy providers, but as catalysts for productive energy consumption, illumination, and even irrigation for agriculture. The organization asserts that the shift to such sustainable energy solutions is not just about power – it’s a move towards a greener, eco-friendly planet.
To further its cause, TAMFI actively organizes capacity-building workshops, renewable energy field trips, discussions with decision-makers, and meetings for Tanzanian financial institutions. They are resolute in ensuring these institutions are well-equipped to finance renewable energy projects.
Richard Nyamonge, Managing Director of Enokwe Finance Limited, underlined their pledge to finance renewable energy initiatives, stating, “We stand as advocates for sustainable practices. Financing renewable energy is our way of championing a more environmentally conscious future for Tanzania.”
Established in 2001, TAMFI serves as a non-profit umbrella organization for microfinance institutions in Tanzania. Boasting over 150 members, it reaches out to approximately 2 million micro-entrepreneurs and communities throughout Tanzania. Its mission revolves around supporting the microfinance sector, facilitating responsible and sustainable microfinance, and advocating for a propitious legal framework for microfinance institutions.