Government seeks to turn carbon trading into a driver of economic growth, clean energy and community incomes under Development Vision 2050
By Business Insider Reporter
Tanzania is positioning itself to become a leading African carbon market hub, strengthening regulatory frameworks, transparency and investment opportunities to turn carbon trading into an engine of economic growth and sustainable development.
The Minister of State in the Vice-President’s Office (Union Affairs and Environment), Engineer Hamad Yussuf Masauni, outlined the ambition on October 22, 2026, when opening the Tanzania Carbon Market and Investment Forum 2026 in Dar es Salaam, held under the theme “One Day. One Market. One Shared Vision.”
Masauni said the government wanted carbon trading to generate employment, increase community incomes, attract investment, conserve forests and promote clean cooking, in line with Tanzania’s Development Vision 2050.
“Tanzania has decided to become a hub for a high-integrity carbon market in Africa, where every verified tonne of carbon translates into jobs for our young people, income for our villages, conserved forests, clean energy in our homes and capital to implement Development Vision 2050,” he said.
He emphasised that success would depend not simply on the number of carbon projects but on their quality, legal compliance, actual investment and measurable benefits to citizens.
Clean cooking offers investment opportunities
Masauni identified clean cooking as an important opportunity for carbon market development, citing its potential to reach millions of households while reducing greenhouse gas emissions.
The sector could attract investment in cleaner cooking technologies, manufacturing, distribution and financing, while creating opportunities for local businesses.
However, the commercial success of such projects will depend on affordability, household adoption and credible verification of emissions reductions. Carbon revenue cannot be guaranteed, as returns depend on credit prices, project performance and market demand.
Credibility key to investor confidence
National Carbon Monitoring Centre (NCMC) Chief Executive Kathryn Kigaraba said the centre would support market development through scientific expertise, appropriate methodologies, transparent information and robust monitoring and verification systems.
She said collaboration among government institutions, project developers, investors, financial institutions, researchers, communities and development partners would be essential.
Reliable project registration, transparent reporting and credible verification are important for attracting buyers and ensuring that carbon credits represent genuine emissions reductions or removals.
For Tanzania, a predictable regulatory environment and effective oversight could help reduce investment risks and strengthen its competitiveness in the expanding carbon market.
Communities must benefit
Permanent Secretary in the Vice-President’s Office, Dr Richard Muyungi, said communities managing forests, wetlands, mangroves and other carbon-rich ecosystems should participate fully in designing and implementing projects and deciding how benefits are shared.
He also called for women, young people, local entrepreneurs and small-scale project developers to have opportunities in the emerging carbon economy.
Meaningful community participation will be critical to building trust and ensuring that carbon projects deliver lasting environmental and economic benefits.
Tanzania’s ambition to become a regional carbon market hub will ultimately depend on translating investment commitments into operational projects, verified credits and tangible benefits for citizens. A well-governed market could unlock private capital for conservation, clean energy and green enterprise, supporting the country’s long-term economic transformation.
