AS Tanzania sets ambitious renewable energy targets for 2025, Tanzania Association of Microfinance Institutions (TAMFI) has embarked on supporting renewable energy financing at the grassroots.
TAMFI Chief Executive Officer, Ms Winnie Terry said on Tuesday that Tanzania targets to generate 6,000MW of electricity from renewable energy sources by 2025 and meet this target, concerted efforts from key players, including financial institutions, are required.
“TAMFI is pleased with the positive response from several financial institutions in Tanzania towards renewable energy financing for end users,” she said.
According to TAMFI, a greener and more sustainable Tanzania powered by renewable energy sources such as solar, is no longer a distant dream, but a promising reality.
The not-for-profit umbrella organisation for microfinance institutions in Tanzania has been promoting decentralised renewable energy (DRE) financing in the country and their efforts are finally bearing fruit.
She said TAMFI is optimistic about the future and delighted to see that several of its members have started lending to end-users for renewable energy.
This has been made possible thanks to a project supported by the C.S. Mott Foundation, which is committed to building an inclusive financial ecosystem for end-users and enterprises in Tanzania.
“Access to finance is a game-changer for Tanzania’s renewable energy sector. I am thrilled that a few MFIs are lending to end-users for renewable energy. I believe financing renewable energy will soon become standard practice for financial institutions in Tanzania,” said Ms Terry.
TAMFI has been implementing the first and second phases of the Energy Access, Building an Innovative Financial Ecosystem for Enterprises and end users project.
This project has increased awareness of the need for renewable energy financing among financial institutions and it is expected to positively impact Tanzania’s economic development, poverty reduction, and environmental sustainability.
Financial institutions, including Enokwe Finance Ltd, Samekaya SACCOS, Vision Fund Microfinance Bank, Maendeleo Bank, BRAC Tanzania Finance Ltd, Tujijenge Microfinance Ltd, Engishon Microfinance Ltd, and HP Finance are some of the financial institutions under TAMFI which have started rolling out Renewable Energy products and services.
“We are greatly heartened by the proactive steps taken by some financial institutions towards financing renewable energy.
By extending loans to renewable energy end users, these financial institutions have made significant strides in mainstreaming renewable energy financing,” she said.
