Despite strong economic growth over the last decade, Tanzania still experiences poverty levels of around 40 per cent, with many of those reliant on an under-developed agricultural sector that is vulnerable to climate change. This study, published by the Federal Ministry for Economic Cooperation and Development, provides an in-depth analysis of the climate finance readiness needs, with a particular focus on Tanzania’s water sector.
Key messages and recommendations to emerge from the findings are presented according to the three components of the study’s framework: planning, aptitude, and access:
Planning: There is evidence of growing national interest in responding to climate change, e.g. the 2012 National Climate Change Strategy, and the 2013 National REDD+ Strategy and Action Plan.
Despite being identified as a key risk factor to economic growth, there appears to have been no exploration of financing climate change actions in any detailed way to date.
Coordination challenges face the water sector due to differences in organisational structures based on river basins, and on the administrative divisions of local government.
The climate change implications of national investment choices should be analysed; training and workshops on climate change for key staff in the Planning Commission provided; and a climate change investment strategy for the water sector aimed at increasing resilience should be developed.
Aptitude:
Although much has been done in identifying potential actions, these have not been prioritised and funding mechanisms lack clarity.
All stakeholders report concerns regarding their capacity to mainstream climate change adaptation.
Detailed plans and costings for priority interventions drawn from the National Climate Change Strategy are required, and capacity in climate related project screening, appraisal, and selection beyond the Planning Commission should be strengthened.
Access: Greater awareness of available funds may help to increase Tanzania’s thus far limited access to climate finance.
Though climate finance has to-date largely been intermediated by the U.N, plans are at an early stage for developing a national financial mechanism to cope with increasing demand for climate finance. This process should be adequately supported.
A reporting, monitoring, and evaluation protocol for assessing the climate change impact of investments in climate related sectors should be developed; this is of particular importance in the water sector.