Finance Minister and Ambassador Khamis Mussa Omar revealed that Tanzania has secured $6.7 million in grants from the Multilateral Cooperation for Development Financing (MCDF) to prepare three strategic infrastructure projects since joining the fund as an observer in July 2025. The funds, equivalent to 17.73 billion Tanzanian shillings, are allocated for the Tanzania-Malawi 400kV Power Interconnector, the Lower Songwe Hydropower Project, and the Tanzania-Burundi Standard Gauge Railway (SGR). These initiatives, outlined during a session of finance ministers at the Asian Infrastructure Investment Bank’s (AIIB) 11th Annual Meeting in Doha, Qatar, aim to enhance regional connectivity and attract investment, according to Omar’s remarks.
Omar emphasized that the grants align with Tanzania’s Fourth Five-Year Development Plan (2026/27–2030/31), which prioritizes economic transformation through investments in energy, transport, logistics, digital infrastructure, and regional integration. He described MCDF as a critical partner in refining project quality, improving bankability, and mobilizing additional financing. The minister also endorsed MCDF’s 2027–2031 strategic framework, advocating for increased focus on regional connectivity, project readiness, and climate resilience, while expressing hope for continued collaboration with AIIB, multilateral development banks, and other stakeholders.
AIIB President Zou Jiayi highlighted MCDF’s role in converting infrastructure needs into bankable projects through technical assistance and capacity-building. She noted the fund’s expansion into bridge financing and emerging sectors like smart housing and digital education, while maintaining transparency and prudent resource management. The MCDF grants, she added, reflect the organization’s commitment to supporting developing nations in advancing sustainable infrastructure initiatives.
The projects underscore Tanzania’s efforts to strengthen regional ties and economic integration, with the SGR and power interconnector expected to facilitate trade and energy sharing across East Africa. The Lower Songwe Hydropower Project, meanwhile, could bolster renewable energy capacity in the region. The collaboration with MCDF and AIIB signals a broader strategy to leverage multilateral partnerships for long-term infrastructure development and investment attraction, as outlined by Tanzanian officials during the Doha meeting.