Tanzania’s Tanga Urban Water Supply and Sanitation Authority (Tanga UWASA) has made history by issuing East Africa’s inaugural Sub-national Water Infrastructure Green Bond, valued at TZS 53.12 billion.
The 10-year project revenue bond, set to be listed on the Dar es Salaam Stock Exchange (DSE), offers investors an attractive interest rate of 13.5% per annum, payable semiannually. This initiative aligns with Tanzania’s Alternative Project Financing (APF) strategy, which was adopted in 2021 to diversify the country’s domestic revenue sources for financing essential national development projects across various sectors, including water, energy, healthcare, and agriculture.
H.E. Philip Mpango, the Vice President of the United Republic of Tanzania, emphasized the significance of financing strategic revenue-generating projects through bonds like the Tanga Bond. Such initiatives alleviate pressure on the government budget, allowing for a focus on vital social initiatives that cannot be funded solely through commercial avenues.
Deputy Minister of Finance, Hon. Hamad Chande, reiterated the government’s commitment to promoting the use of the APF strategy among public entities. By encouraging local development financing through bonds, Tanzania aims to reduce reliance on government grants and draw inspiration from the private sector’s successful financing models.
Mark Napier, CEO of FSD Africa, expressed excitement about the Tanga UWASA Water Green Bond’s successful launch, emphasizing the role of innovative financing in driving sustainable development in East Africa.
Hon. Jumaa Aweso, the Minister for Water, stated the government’s targets of achieving 95% water accessibility in urban areas and 85% in rural areas by December 2025. The Tanga Water Green Bond project is expected to contribute significantly to these goals, aiming to improve water supply reliability and network coverage in Tanga City and neighboring townships.
Stakeholders involved in the preparation of the Tanga Water Green Bond include NBC Bank as the lead transaction advisor, supported by FSD Africa for the green framework. Additionally, FIMCO and Global Sovereign Advisory provided financial and investment advisory services, while ALN Tanzania served as the legal advisor.
The public, investors, institutions, and individuals are encouraged to explore investment opportunities in the Tanga Water Green Bond through NBC Bank branches or authorized brokers during the six-week offer period.
