Between Droughts and Floods: Tanzania’s Urgent Need for Climate Finance


Climate change remains a critical global issue, with ramifications reaching far and wide, including the East African nation of Tanzania. The effects of climate change are increasingly evident, with rising sea levels, floods, droughts and submerged islands (e.g., Maziwe, Panza,) are becoming stark realities for Tanzanians. Coastal regions are among the vulnerable, facing the brunt of these environmental shifts, which threaten livelihoods and exacerbate existing socio-economic challenges.

In light of these pressing challenges, the need for climate change financing in Tanzania cannot be overstated. Various actors, including government agencies, international organizations, non-governmental organizations, and the private sector, play vital roles in mobilizing and allocating funds for climate change adaptation and mitigation efforts. These resources are crucial for implementing resilience-building projects, enhancing disaster preparedness, and promoting sustainable development initiatives across the country.

Globally, the urgency to combat climate change via financial strategies is increasingly acknowledged. The Paris Agreement highlights the duty of wealthier nations to extend financial support to developing nations, including Tanzania, aiding their efforts in climate change adaptation and mitigation. Nonetheless, the realization of these financial goals for climate change continues to be a complex issue, with challenges persisting on both an international and national scale.

In Tanzania, the legal and regulatory framework for climate change financing is underpinned by several key documents. The Environmental Management Act sets the foundation for environmental governance, including climate change mitigation and adaptation measures. The National Climate Change Response Strategy (2021-2026) outlines objectives to mainstream climate change issues into development plans and budgets, and to facilitate the mobilization of finance and technologies for climate change interventions. Additionally, the National Adaptation Programme of Action (NAPA) identifies urgent and immediate needs to adapt to climate change impacts, while the National Strategy for Growth and Reduction of Poverty (NSGRP), also known as MKUKUTA, integrates climate change as a cross-cutting issue, emphasizing its inclusion in poverty reduction efforts. These instruments collectively aim to ensure that climate change financing is effectively mobilized and utilized to support Tanzania's adaptation and mitigation needs, contributing to sustainable development and environmental protection.

Furthering the established framework, Tanzania has enacted laws and regulations that serve as a blueprint for the effective mobilization and utilization of resources dedicated to climate change financing. This includes specific provisions for the allocation of budgets, the creation of climate funds, and the incorporation of climate change considerations into the nation's development plans and policies. Despite these comprehensive measures, the country faces challenges in the form of implementation gaps and insufficient enforcement, which can impede the regulatory framework's intended impact and effectiveness. These obstacles underscore the need for strengthened governance and oversight to ensure that climate change financing can be fully realized and effectively contribute to Tanzania's environmental and developmental goals. A table below (depicted from the 2022-23 CAG report) presents the dire failure of how climate change financing in the country.

Innovative Sources

Target (TZS Billion)

Actual (TZS Billion)

Difference (TZS Billion)

Percentage of Achievement (%)

Climate change financing

699

27

671

4


The shortcomings in securing funds for climate change initiatives in Tanzania reflect a wider global struggle to gather sufficient resources for this critical cause. The competition for budget allocation, constrained fiscal capabilities, administrative hurdles, and insufficient political commitment all play a part in the deficit of climate financing. Additionally, the intricate demands of addressing climate change necessitate a synergistic approach involving various sectors and stakeholders, adding layers of complexity to the financing processes.

Despite these challenges, the imperative for climate change financing in Tanzania remains paramount. The recent spate of floods in Tanzania and neighboring Kenya underscores the urgent need for enhanced climate resilience measures. Investing in climate change adaptation and mitigation, Tanzania can mitigate the adverse impacts of climate change, protect vulnerable communities, and foster sustainable development. Furthermore, concerted efforts to mobilize resources and strengthen institutional capacities are essential to ensure the effective implementation of climate change financing initiatives, thereby safeguarding the future well-being of Tanzanians and the environment.

WHAT SHOULD BE DONE

1. Enhance legal and regulatory frameworks

2. Increase Public-Private Partnerships (PPPs)

3. Prioritize climate resilience projects

4. Improve international cooperation

5. Enhance capacity building

6. Promote public awareness and participation

 

MORE INFO ON TANZANIA FINANCIAL TREND IN ADDRESSING SUSTAINABILITY

   

Innovative Sources

Target (TZS Billion)

Actual (TZS Billion)

Difference (TZS Billion)

Percentage of Achievement (%)

LGAs bonds/municipal bonds

400

0

400

0

Sovereign market bond

3,450

0

3,450

0

Climate change financing

699

27

671

4

PPP

3,912

0

3,912

0

Development financial institutions (TIB)

15,000

15,000

0

100

Pension equity fund

300

0

300

0

FDI

29,565

8,437

21,127

40

Total

53,327

8,464

44,589

19

SOURCE: CAG REPORT

0
0
0

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