Climate change threatens TZ’s blue economy growth, govt warns

Tanzania’s blue economy and renewable energy sectors face significant climate change threats despite their immense growth potential, government officials warned yesterday at a specialized training session in Zanzibar focused on attracting critical investment to sustainable energy projects.

Tanzania’s ambitious plans to leverage its vast blue economy and renewable energy resources for economic growth could be derailed by escalating climate change impacts, according to senior government officials. The warning came during a specialized workshop on bankable energy transition projects held in Zanzibar.

Richard Muyungi, Permanent Secretary in the Vice-President’s Office for Union and Environment, emphasized the urgent need for developing countries to strengthen their capacity to attract sustainable energy investments amid widening global financing gaps.

“Developing countries require about 1.7 trillion Tanzanian shillings annually to finance clean energy transitions, yet only 544 billion shillings was recorded in global foreign direct investment in 2022,” Muyungi noted, highlighting the significant shortfall in available financing.

Tanzania’s renewable energy sector, despite abundant natural resources, continues to suffer from underinvestment, particularly in critical infrastructure such as electricity transmission systems. The country has committed to reducing greenhouse gas emissions by 30-35 percent by 2030 compared to 2015 levels under its Nationally Determined Contributions (NDCs).

Currently, renewable energy accounts for approximately 80 percent of Tanzania’s energy mix, primarily from hydropower and biomass sources. However, officials stress the necessity for further investment to modernize and diversify the sector to meet growing demand while maintaining environmental sustainability.

Zanzibar, which hosts significant blue economy activities, faces particularly acute climate vulnerabilities. Approximately 70 percent of its population depends on fishing and tourism – sectors directly threatened by rising sea levels and other climate change effects. The archipelago has set an ambitious target of increasing its renewable energy share from just 10 percent in 2020 to 50 percent by 2030, focusing primarily on solar, wind, and biomass energy sources.

Meeting these climate and energy goals will require substantial financial resources. Muyungi revealed that Tanzania requires an estimated 780 billion shillings between 2023 and 2030 to support climate adaptation and mitigation efforts, including critical investments in the blue economy sector.

The training workshop brought together government officials, development partners, and energy sector stakeholders to explore practical financing pathways for sustainable energy solutions. Muyungi urged participants to translate the knowledge gained into bankable projects capable of attracting financing while ensuring benefits reach vulnerable communities, women, and youth.

The workshop aligns with Tanzania’s broader climate commitments and the Sustainable Development Goals (SDGs), reflecting the government’s recognition that addressing climate change and energy transitions requires both technical expertise and innovative financing approaches.

Tanzania’s focus on the blue economy has intensified in recent years as the country seeks to capitalize on its extensive coastline and marine resources. Zanzibar recently launched a marine data initiative to strengthen its blue economy development, recognizing the sector’s potential to drive sustainable economic growth while preserving critical marine ecosystems.

The government’s emphasis on renewable energy and climate adaptation reflects growing recognition of climate change as not merely an environmental concern but a significant economic risk factor that could undermine development gains if left unaddressed.