By Business Insider Reporter
Tanzania’s financial leadership is stepping boldly into the climate arena, signaling a decisive shift toward sustainable investment as the country confronts the growing costs of climate change.
At the Green Finance Forum held this week in Dar es Salaam, banking executives, capital market stakeholders, and climate finance experts united around a clear message: it’s time to translate climate commitments into concrete capital flows.
Convened by the CEO Roundtable of Tanzania (CEOrt), the high-level gathering focused on mobilizing private capital to accelerate the green transition, amidst warnings that climate inaction could shave trillions off Africa’s economic output and deepen poverty across the continent.
Under the theme “Mobilizing Resources for the Green Transition,” the forum spotlighted the urgent need to rewire Tanzania’s financial systems for resilience and inclusion. The country’s banking sector, long viewed as a pillar of economic stability, is now positioning itself as a key driver of climate-smart growth.
KCB Bank Tanzania, for example, has woven environmental, social, and governance (ESG) considerations into its credit framework.
“There is no sector untouched when it comes to the environment,” said Gabriel Lekundayo, the bank’s Director of Corporate Banking. “We’re proactively identifying climate-resilient projects, especially in agriculture and infrastructure.”
NMB Bank Plc echoed this call to action, presenting its suite of green financing instruments – including sustainability bonds – as strategic tools for inclusive economic development.
“Sustainable finance is not just a moral imperative, it’s a strategic one,” said Innocent Yonazi, NMB’s Head of Investor Relations.
The push comes at a time when Africa, despite contributing less than 4% of global emissions, is facing the most severe climate shocks. According to the African Development Bank, climate change could slash the continent’s GDP per capita by over 7% by 2050 – yet Africa receives less than 5% of global climate finance.
Tanzania’s efforts to buck this trend are gaining traction, but challenges remain. Participants at the forum pointed to the lack of scalable green project pipelines, inconsistent sustainability data, and limited local investor engagement as major bottlenecks.
Dr Severin Kalonga of WWF Tanzania emphasized the risks of delay, calling climate change a “poverty multiplier” that is already undermining food security and productivity. WWF is championing nature-based solutions and the integration of environmental metrics into financial systems as part of its response.
Capital markets are gaining attention in Tanzania’s green finance movement, with Dar es Salaam Stock Exchange CEO Peter Nalitolela highlighting growth in green bonds and ESG reporting, while calling for more innovation and institutional investment. Marking its 25th anniversary, the CEO Roundtable reiterated its commitment to sustainable development, with Executive Director Santina Benson affirming that green finance is now central to the country’s growth. However, participants agreed that achieving meaningful progress will require more than funding – it demands collaboration, innovation, and sustained commitment.
