In partnership with Kenya Association of Manufacturers (KAM) and Confederation of Tanzania Industries (CTI), AFD hosted over 70 key energy players at the inaugural Sunref East Africa launch in Dar-es-Salaam over the weekend.
Speaking at the launching ceremony, Head of Delegation of the European Union in Tanzania, Roeland Van De Geer, highlighted the need of an enabling environment with favourable government policies and regulatory frameworks to act as catalysts to promote private sector investment in sustainable energy.
"Once the rules of the game are clearly set, investments will follow, if we get there, it is a win-win situation for all with increased growth and industrialisation as a result of energy being expanded," Van De Geer said.
Ministry of Energy and Minerals Acting Assistant Commissioner (New and Renewable Energy) Styeden Rwebangila said that about US$11 million is already available for lending to renewable and energy efficiency projects financing through Bank of Africa Tanzania (BoA-T).
French Ambassador to Tanzania Malika Berak said the French government is committed to continued investment in clean energy and the fight against global warming through the Sunref programme, which operates in over 70 countries across the world.
Emmanuel Baudran, the AFD country representative, underscored the huge economic development potential presented by the transition towards a green economy.
"Green growth provides the private sector with opportunities in the fields of energy management, sustainable natural resources management and environmental protection. With the customized financing from AFD, investments in green energy and energy efficiency solutions is now possible in Tanzania," Baudran said.
BoA Bank Tanzania’s Manager for Marketing, Research and Development Muganyizi Bisheko said that the credit line will provide a good room for private sector with the greater access to financing renewable energy and energy efficiency projects by giving them concessional loan characterized by low interest rates, long tenor, and long grace period.
The SUNREF East Africa has attracted a number of projects which are at various stages of review and development from such sectors as manufacturing, services and agriculture.
Sunref East Africa includes a provision for green credit lines provided to local banks in the three countries such as Kenya, Uganda and Tanzania of more than Eur 35 million. In November 2016, BOA-T became the first bank to sign for a USD11 million credit line dedicated to energy efficiency and renewable energy sector. Other banks will be approached to join.
Apart from the credit line in Tanzania, partner banks in the region include Cooperative Bank of Kenya, Commercial Bank of Africa and Diamond Trust Bank in Kenya and Uganda.