MCDF grants support key projects

DOHA: TANZANIA has benefited from 6.7 million US dollars (equivalent to 17.73bn/-) in grants from the Multilateral Cooperation for Development Financing (MCDF) to prepare three strategic infrastructure projects since joining the fund as an observer in July 2025.

Finance Minister, Ambassador Khamis Mussa Omar, said the grants are supporting preparation of the Tanzania-Malawi 400kV Power Interconnector, the Lower Songwe Hydropower Project and the TanzaniaBurundi Standard Gauge Railway (SGR), which are expected to strengthen regional connectivity and attract investment.

He made the remarks while addressing a session of finance ministers, who are governors of the Asian Infrastructure Investment Bank, during the bank’s 11th Annual Meeting in Doha, Qatar.

“Since joining MCDF as an Observer in July 2025, Tanzania has received nearly 6.7 million US dollars in grants to prepare three strategic projects,” Ambassador Omar said.

He said the support comes at a time when Tanzania is implementing its Fourth Five-Year Development Plan for 2026/27- 2030/31, which prioritises economic transformation through investment in energy, transport, logistics, digital transformation and regional connectivity.

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“We therefore see MCDF as an important partner in helping Tanzania prepare high-quality projects, strengthen their bankability and mobilise additional financing,” he said.

The minister also welcomed MCDF’s next strategic phase for 2027-2031, saying Tanzania supports greater emphasis on regional connectivity, improved project readiness, broader partnerships and climate resilience.

He said the government looks forward to continued cooperation with MCDF, AIIB, multilateral development banks and other development partners in preparing infrastructure projects capable of attracting long-term investment.

Speaking at the meeting, AIIB President Zou Jiayi said MCDF plays an important role in helping developing countries turn infrastructure needs into bankable projects through technical assistance and capacity building.

She said the fund is expanding its focus to include bridge financing and emerging sectors such as smart housing and digital education while maintaining transparency and prudent management of resources contributed by member countries and development partners.