Pakistan pledges US $1bn for water, electricity, waste projects in Tanzania

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Pakistan pledges US $1bn for water, electricity, waste projects in Tanzania

The Islamic, federal and multiparty Republic of Pakistan has pledged a sum of US $1bn to support Tanzania’s efforts in water supply, power supply and waste management.

Tanzania will benefit from a new loan for sustainable development. The funding proposal from the Pakistani government was unveiled recently during the launch of the Tanzania-Pakistan Business Council (TPBC) in Dar es Salaam.

TPBC chairman Shaidi Majeed announced that the country will mobilise the funds over five years. According to the Pakistani embassy in Tanzania, in 2020, the total funding provided to the Tanzanian government already amounted to US $490M. The US $1bn loan will thus increase its financing portfolio in the East African country.

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Challenges in Tanzania

Tanzania is facing drought, which is manifested in the lack of rainfall. In order to secure water supplies for households and farmers, the government is implementing a number of projects, the latest of which will see the construction of 21 irrigation schemes in the Mbeya region. The future facilities will boost production of paddy to 97,300 tonnes per year. Paddy is a rice grain that has kept all its husks intact.

The government intends to to invest US $12.1bn between 2022 and 2023, as part of the Arusha Urban Water Supply and Sanitation Improvement Project. In terms of electricity, the Tanzanian government is increasingly focusing on hydro and solar power to diversify the country’s electricity mix. According to a 2015 report by the International Energy Agency (IEA), Tanzania is 66% dependent on natural gas and oil for its electricity production.

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