At the Global Gateway Forum in Brussels, Agence Française de Développement (AFD) signed a contract to jointly finance the construction of the Kakono hydropower plant in Tanzania. Through this agreement the EU and the AFD will jointly contribute €146 million, about half of the total cost of €296 million of the project.
Commissioner for International Partnerships Jutta Urpilainen said: “The recent, first-ever Tanzania–EU Business Forum saw investments worth €1 billion being announced, notably the Kakono hydropower project. I am pleased to follow up with today’s signature, with the EU contributing to Tanzania’s efforts to diversify its energy sources and bring green energy into the mixin line with the Global Gateway Investment Package for Africa.”
The long-standing cooperation between the EU and Tanzania focuses on the three priority areas of green deals, human capital and employment, and governance.
Hard infrastructure for a green economy
The EU will invest €36 million in grants in the construction of a hydropower plant at the Kakono dam on the Kagera river in a joint project with the French Development Agency (AFD) and the African Development Bank (AfDB) worth €296 million in total.
The hydropower plant will respond to the increasing demand for generation capacity in northern Tanzania and provide a stable supply of power locally in the Lake Victoria Zone and nationally. It will add 87,8MW to Tanzania’s national grid and reduce greenhouse gas emissions by 213,810 tons per year, contributing significantly to both economic development and climate change adaptation.
The Global Gateway Forum
The Global Gateway Forum brings together an assembly of government representatives from the European Union and across the globe, alongside key stakeholders from the private sector, civil society, thought leaders, financial institutions, and international organisations to promote global investment in infrastructure.
During this landmark occasion, a series of strategic investment announcements and agreements with partner countries are being presented, marking a significant leap towards the implementation of the Global Gateway strategy. These announcements not only underscore the tangible worldwide impact of Global Gateway but also provide a platform for governments and businesses to engage in critical discussions surrounding its priorities.
The Global Gateway Forum highlights a collective commitment to fostering sustainable growth and resilience worldwide through a Team Europe approach.
Global Gateway
Global Gateway represents the European Union’s effort reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems. It provides sustainable investment opportunities to enhance the prosperity and security of our global partners and Europe alike.
The Global Gateway strategy embodies a collaborative approach that brings together the European Union, EU Member States, and European development finance institutions. Together, we aim to mobilize up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.
Team Europe stands out with a compelling proposition for democratic partner nations, focusing on sustainability across social, environmental, and financial aspects, promoting long-term drivers of growth through a comprehensive 360-degree approach, encompassing both hard and soft infrastructure, and reinforcing the resilience of nations seeking strategic autonomy.
For More Information
EU Tanzania Cooperation
EU-Tanzania country projects infographics
Tanzania-EU Business Forum: Team Europe raises 1 billion EUR investment in Tanzania
Global Gateway Forum
Global Gateway
