Tanzania secures US$227M from World Bank to boost aquaculture and climate resilience

TANZANIA – The World Bank has approved US$227 million in new funding for Tanzania to support two major projects focused on sustainable marine resource management and enhancing climate resilience nationwide.

The recently announced financing package includes credits and grants from the International Development Association (IDA) and other multi-donor trust funds. 

It will fund the Tanzania Scaling-Up Sustainable Marine Fisheries and Aquaculture Management Project (TAFSAM) and the Scaling-Up Locally Led Climate Action Programme (SCALE).

“These two initiatives create a more holistic response to climate change, protecting both natural ecosystems and the people who depend on them,” said Nathan Belete, the World Bank Country Director for Tanzania, Malawi, Zambia, and Zimbabwe. 

“They will leverage strategic investments and partnerships to strengthen policies, improve management practices, and drive innovation in marine conservation and fisheries to create a thriving ocean economy for the prosperity of all Tanzanians.”

Investing in aquatic economies

TAFSAM, supported by a US$112 million IDA credit and a US$5 million PROBLUE grant, seeks to enhance the sustainable use of marine resources while improving economic opportunities for coastal communities. 

The project arrives as marine ecosystems face growing threats from overfishing and climate change.

Fishing and aquaculture are vital to Tanzania’s economy, contributing 1.8% to the Mainland GDP and 4.8% to Zanzibar’s GDP. The sector directly employs 430,000 people, while over 4.5 million others are dependent on associated activities, including fish processing, marketing, and sales. 

Fish provides a critical source of protein, accounting for 30% of daily animal protein intake on the Mainland and 90% in Zanzibar.

The World Bank notes that Tanzania’s population is projected to rise from 61.7 million in 2022 to 77.7 million by 2030, resulting in a doubling of fish demand. 

Seaweed farming, one of the key marine aquaculture activities, already employs 25,000 people, 80% of them women, and is Zanzibar’s third largest export.

Supporting climate action at the grassroots

Meanwhile, the SCALE programme will receive US$100 million in IDA credits and a US$10 million grant from the Social Sustainability Initiative for All.

 It employs a Program-for-Results (PforR) approach, linking disbursements to measurable outcomes and enhancing the capacity of local governments to implement climate adaptation strategies.

The initiative will establish multi-sectoral district climate action teams, enhance awareness of climate risks, and assist communities in formulating locally driven adaptation plans. Around 6.6 million Tanzanians, nearly 10% of the population, are expected to benefit directly.

In addition to institutional capacity building and better national climate data systems, SCALE will promote alternative livelihoods near protected areas.

Communities will implement projects such as ecotourism, agroforestry, beekeeping, and handicrafts, supported by newly established community conservation banks. 

These banks will provide loans for climate-smart practices like fodder production, reforestation, efficient irrigation systems, and clean energy.

Urgency in the face of climate shocks

Tanzania’s vulnerability to climate shocks underscores the need for urgent action. The country has suffered over 60 natural disasters in the past two decades, with annual losses from floods and droughts averaging US$170 million. 

Recent events, including three cyclones and El Niño rains, have resulted in 155 deaths, displaced over 200,000 people, and caused US$368 million in damages.

In 2018 alone, flooding in Dar es Salaam inflicted US$100 million in damages, equivalent to 2% of the city’s GDP. Nationwide, droughts affect an estimated 4.8 million people annually.

The new projects are part of the World Bank’s broader strategy through IDA, its concessional lending arm for the world’s poorest countries. Since its founding in 1960, IDA has provided US$496 billion to 114 countries, with nearly 70% of recent commitments directed to Africa.

With this latest funding, Tanzania is poised to strengthen both its ocean economy and its climate resilience, key pillars for safeguarding livelihoods and promoting sustainable development.

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