Presentation : French Aid Development
The French Development Agency (AFD) has granted funds to Tanzania for a total amount of € 260 millions, from which 80% are soft loans. Most of these funds aim at developing water and sewerage sector as well as energy.
AFD contributes to improving access to water and sanitation facilities within the scope of the Tanzanian Ministry of Water’s (MoW) sectorial approach, which is supported by numerous donor organizations. AFD also participates in the development of the Lake Victoria Water Basin in Uganda, Kenya, and Tanzania with investments in the order of 128.3 M€. The French Development Agency, with numerous donor partners, participates in a basket fund program aimed at the development of the water sector at a national level (loans of 30 M€ in 2009 and an additional 40 M€ currently being processed) and provides technical assistance to the MoW (500 000 € in 2009). In addition, investments were made for infrastructure development in the Victoria lake region: Drinking water supply in the towns of Utete and Mpwapwa (grant of 6 M € in 2002), Drinking water supply in the cities of Bukoba and Musoma on the coast of Lake Victoria (grant of 6,8 M€ in 2008, loan of 40 M€ in 2011), Rehabilitation and extension of the water distribution systems in cities on the coast of Lake Victoria (Mwanza, Bukoba, and Musoma), and Improvement of access to drinking water in Mwanza and its suburbs (loan of 45 M€ in 2012).
AFD supports the Tanzanian government’s efforts in the energy and transport sectors. The French Development Agency provided a concessional loan to Tanzania in 2013 for the sum of 53 M€ for the rehabilitation of 10 electrical sub-stations and of the communication system of the public operator, TANESCO’s, distribution network. The Agency is currently assessing the feasibility of different projects related to the expansion of the electrical distribution network: power lines in North-West Tanzania between Geita and Nyakanazi, interconnection between Kenya-Tanzania-Zambia. In the transport sector, AFD is providing funding for the renovation of Dar es Salaam’s airport.
For the promotion of the private sector, in 2013, AFD granted a non-sovereign credit line of 10 M€ to BOA-Tanzania, at market value, to be used for the financing of renewable energy and energy efficiency projects by private companies. Similar lines of credit are already in place in Kenya and Uganda. To support their initiative, the AFD also provides regional technical assistance to the banks and private investors involved in the development of the projects. In 2013, the AFD also granted a non-sovereign loan of 40 M€ for the expansion of the Aga Khan Hospital of Dar es Salaam and the establishment of 30 new health centers.
AFD also supports French NGOs’ projects in Tanzania : self-managed health plans have been created by the “Centre international de Développement et de Recherche (CIDR)” for the benefit of the less fortunate (grant of 492 000€) and socio-ecological corridors have been instated in the Maasai steppe and Rift Valley in Northern Tanzania by the “Fondation Internationale pour la Gestion de la Faune” (848 981€).
In the past, AFD has supported the education and professional training sectors with a contribution of 4.7M€ for the creation of Dar es Salaam’s National College of Tourism to increase the competitiveness of Tanzanian graduates and companies in the field. The project, inaugurated in December 2011 by the President of the Republic of Tanzania and the French Minister of Cooperation, is now completed. AFD has also funded three debt reduction and development contracts pertaining to the education sector for the total sum of 12,7 M€ from 2001 to 2017.