Tanzania pushes for Microfinance support in clean cooking initiative

TANZANIA: TANZANIA has called on Microfinance institutions to offer low-interest loans to households for the purchase of clean cookstoves with the aim of facilitating the implementation of its clean cooking strategy by 2034.

Speaking at the Africa50 2024 Annual General Shareholders Meeting in Antananarivo, Madagascar, Minister of Finance Dr Mwigulu Nchemba speaking on behalf of President Samia Suluhu Hassan emphasised Tanzania’s commitment to supporting clean cooking initiatives through accessible financing.

She stated that these loans will assist households in transitioning to cleaner cooking solutions.

“It is crucial to make clean cooking affordable, especially in low-income areas. Governments can introduce effective incentives for both producers and consumers to reduce the cost of cooking materials,” President Samia said.

She highlighted that clean cooking is not only a national priority but also an international agenda that should be approached as a viable business opportunity.

According to the International Energy Agency, nearly one billion people in Africa rely on polluting fuels for cooking, which adversely affects health and results in approximately half a million premature deaths annually. Despite these alarming figures, the cost of addressing clean energy issues is relatively low.

Meanwhile, Madagascar’s President Andry Rajoelina acknowledged Africa50’s vital role in tackling the continent’s infrastructure and economic challenges, emphasising the foundation it lays for sustainable development and prosperity.

He praised Africa50 for mobilising financing for large-scale infrastructure projects across Madagascar and the continent. “Madagascar, with its abundant natural and renewable resources, has become a model for energy transition,” President Rajoelina stated, stressing the need for international partners like Africa50 to support the country’s green energy vision.

“To realise our vision, we need the support of international partners. This is where the role of Africa50 members is crucial. We must work together to secure funding for ambitious projects that enable Madagascar to transition to sustainable green energy. This challenge is for all of Africa,” he added.

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President Rajoelina further remarked that Africa has a unique opportunity to establish itself as a global leader in the fight against climate change by backing innovative and sustainable projects. “Africa is not the problem; Africa is the solution,” he asserted.

The meeting brought together global leaders, policymakers, investors and infrastructure experts to strategise and collaborate on mobilising investments for Africa’s sustainable future.

In a keynote address, Dr Akinwunmi Adesina, President and Chairman of the Boards of Directors of the African Development Bank Group, commended Africa50’s efforts, stating that it is exceeding expectations by bridging the funding gap through innovative financing mechanisms and strategic partnerships.

Dr Adesina, who also chairs Africa50’s Board of Directors, highlighted that Africa50 has mobilised over 1.1 billion US dollars in capital commitments and catalysed an additional 4.4 billion USD in external financing in just seven years of operation.

“Its portfolio includes 25 transformative projects in 28 countries, with a total value exceeding 8 billion USD across sectors such as energy, transport, digital infrastructure, education and healthcare,” he said.

In December 2023, the Africa50 Infrastructure Acceleration Fund (IAF) secured 222.5 million USD at its first close, primarily from African investors—a landmark achievement for the continent………………………..