DAR ES SALAAM: AS Tanzania continues to urbanise, local governments are increasingly becoming the frontline institutions in responding to climate change. Cities such as Dar es Salaam, Dodoma, Mwanza, Arusha, Mbeya, Morogoro and Tanga are experiencing more frequent flooding, prolonged droughts, rising temperatures, mounting waste management challenges and growing pressure on public infrastructure. These climaterelated risks threaten economic growth, public health and the quality of life of millions of citizens.
The critical question is: Who will finance the transformation of Tanzania’s cities into climateresilient and environmentally sustainable urban centres? Building climate-resilient cities requires substantial investment in resilient roads, modern drainage systems, green public transport, renewable energy, urban forests, wastewater treatment, flood control infrastructure and climatesmart housing. Yet most Local Government Authorities (LGAs) continue to rely heavily on transfers from the central government, while their own-source revenues remain insufficient to finance such long-term investments.
Green financing presents an important opportunity to bridge this funding gap. Green finance refers to financial resources directed towards projects that deliver environmental benefits while supporting sustainable economic development. These resources may come through green bonds, climate funds, concessional loans, publicprivate partnerships, carbon markets and private-sector investments in environmentally sustainable infrastructure.
Across the world, cities are increasingly using innovative financing mechanisms to fund climate adaptation and mitigation initiatives. Municipal green bonds have financed clean transport systems, energy-efficient public buildings and flood protection infrastructure in many countries. International climate funds also provide grants and concessional financing for urban resilience projects.
Tanzania can learn from these experiences while developing financing models suited to its own institutional and economic realities. However, accessing green finance is far from automatic. Many local governments face institutional, technical and financial constraints that limit their ability to prepare bankable climate projects.
Weak project preparation, inadequate climate data, limited financial management capacity and insufficient understanding of in…
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