To improve Tanzania's energy security, the Abu Dhabi Fund for Development (ADFD) and the Tanzanian government have agreed to a loan for AED387 million ($105.4 million). The project's goal is to completely connect the Kagera administrative region to the national electrical grid, eliminating reliance on energy imports from Uganda and supplying communities, businesses, and service facilities with reliable and secure electricity supplies.
In the presence of Khalifa Abdullah Al Qubaisi, Deputy Director General of ADFD, and other representatives from both sides, the agreement was signed by Dr. Mwigulu Nchemba, Minister for Finance of the United Republic of Tanzania, and Mohamed Saif Al Suwaidi, Director General of ADFD.
Al Suwaidi said that the project was a significant step towards the development of Tanzania’s energy sector and ensuring sufficient electricity supplies to meet the population’s needs sustainably. “The Fund will collaborate with Tanzanian partners to support their development programmes and work towards the UAE’s future aspirations and the Fund’s strategic objectives of accelerating energy projects globally for the betterment of developing countries’ societies,” he said.
Dr. Nchemba lauded Tanzania and the ADFD's long-standing partnership, which dates back to 1977 and has been instrumental in implementing development initiatives and advancing the nation's social and economic growth. He emphasized that the project's financing will lessen the country's reliance on energy imports, boost economic activity, expand existing sectors, and provide people more employment options.
The Kidaho-Uvinza Road and the Kagera Sugar Project are two of the six development projects in Tanzania that ADFD has previously supported. These initiatives have greatly aided Tanzania's development process and raised community quality of life.