Transition to zero-carbon transport gets impetus

TANZANIA: MORE than half the world’s population lives in cities and that is expected to rise to almost 70 per cent by 2050 creating increasing pressure for space.

Transport sector contributes about 23 per cent of the globe’s greenhouse gas emissions from burning fossils fuels. From the total greenhouse gas emissions, the road transport contributes over 75 per cent to the global emissions. This is an environmental challenge that calls for urgent need for sustainable transport in a time of rapidly increasing population and urbanisation.

One way to address this challenge in transport sector is through the sustainable finance because it promotes sustainable development by directing financing towards projects with a positive impact on the environment and society. Sustainable investments help reduce poverty, improve health and well-being and promote gender equality.

The mobility environment is changing due to the growth of green transport options, which are being heralded by breakthroughs in electric vehicles, public transport and sustainable rail freight and bicycle infrastructure.

The financial sector plays a considerable role in contributing towards a sustainable future in speeding up the transition to a low-carbon economy. In effort to support the government in addressing the carbon emissions, Watu Credit Tanzania Limited has embarked in an initiative of offering flexible asset financing for mobility and connectivity assets, making eco-friendly vehicles more accessible.

“A sustainable future in Tanzania is only possible if we take action to transform urban mobility in Dar es Salaam with clean transportation solutions,” Watu Tanzania Country manager, Rumisho Shikonyi said in an interview.

He added, “This is a crucial step that we must take to ensure a better world for ourselves and future generations,” This comprehensive approach empowers individuals, entrepreneurs and small businesses to overcome financial hurdles and participate in a cleaner transportation future. Watu’s commitment extends to all of Tanzania, with a recent initiative expanding financing for CNG-powered three-wheelers.

“Our financing solutions are designed with affordable repayments, easing the financial burden of going green. We go beyond just vehicles, extending financing to smartphones for ride-hailing apps and city navigation,” he said.

This ambitious programme aims to put over 1,000 eco-friendly vehicles on the road by the end of 2024, promoting cleaner air and fostering sustainable economic opportunities. By pioneering asset financing for sustainable mobility, Watu goes beyond just facilitating clean energy adoption.

“We act as a catalyst for innovation and economic growth within the green mobility sector. Our financing empowers aspiring entrepreneurs to launch businesses, creating new jobs and stimulating local economies in Dar es Salaam and across Tanzania,” he noted.

By providing financial support to green startups and research and development in the field of sustainability, it drives the creation of new solutions for environmental challenges.

Sustainable finance plays a key role in promoting the transition to a carbon neutral and sustainably promoting circular economy. By providing financial support to green projects and research and development in the field of sustainability it drives the creation of new solutions for environmental challenges.

Sustainable finance drives sustainability and mitigates climate risk for the global financial system, which relies on healthy ecosystem services.

The investment in sustainable projects is expected to reach over 50 trillion US dollars next year thus becoming a third of all global assets under management while demonstrating a shift in global investment focus towards sustainable finance. At Watu, we believe sustainable development is more than just a tagline.

We’re helping Dar es Salaam build a greener future by pioneering innovative financing solutions for clean energy transitions.

“Through collaborative partnerships with manufacturers, government agencies and community organisations, we’re driving positive change and laying the groundwork for a brighter, greener tomorrow for our city,” Mr Shikonyi added.

Looking ahead, Watu remains firm in its mission of empowering individuals and businesses in Tanzania to thrive in a rapidly evolving world.

By staying at the forefront of asset financing for sustainable mobility, the company will continue to lead the charge towards a more equitable, inclusive, and sustainable future for all in Dar es Salaam and beyond, focusing on promoting clean and green transportation options.

According to Financial Sector Deepening, Africa which is one of the most climate-vulnerable regions of the world currently captures just three per cent of sustainable investment flows, showing the challenge for low-income developing countries to capitalise on the green finance boom.

It therefore important that banks and financial institutions continue to play active role in attaining target of green finance and sustainable finance.