By Business Insider Correspondent, Dodoma
Tanzania has secured a US$55.1 million concessional loan from Hungary to finance the implementation of the Biharamulo Water Supply Project in Kagera Region, marking a significant step in expanding access to clean and safe water in underserved areas.
The financing agreement was signed in Dodoma by the Permanent Secretary in the Ministry of Finance, Natu El-maamry Mwamba, on behalf of the Tanzanian government, in the presence of Hungary’s Ambassador-designate to Tanzania, Katalin Nyirati.
Speaking after the signing ceremony, Dr. Mwamba noted that the agreement unlocks funding through Hungary’s Exim Bank, enabling the long-awaited rollout of the Biharamulo water project.
He added that the initiative aligns closely with Tanzania’s national development priorities, including the Third Five-Year Development Plan and the country’s long-term frameworks under Tanzania Development Vision 2025 and the emerging Dira 2050 agenda.
“The project is expected to significantly improve access to clean and safe water, directly impacting livelihoods and supporting broader socio-economic development goals,” Dr. Mwamba said.
The investment comes at a time when Tanzania is accelerating infrastructure development to support population growth and industrialisation, with water supply identified as a critical enabler of public health, productivity, and investment.
Rural and peri-urban districts such as Biharamulo have historically faced water shortages, affecting agriculture, small-scale industries, and household welfare.
Dr. Mwamba emphasised that while concessional financing remains valuable, Tanzania is also seeking to deepen cooperation with development partners beyond loans, including grants and technical assistance.
Areas such as capacity building, education, and social services were highlighted as priorities for more inclusive and sustainable development outcomes.
The agreement also underscores strengthening bilateral relations between Tanzania and Hungary, which span over six decades. Dr. Mwamba reaffirmed the government’s commitment, under President Samia Suluhu Hassan, to expanding strategic partnerships that support national development and improve citizens’ welfare.
For her part, Ambassador-designate Nyirati described Tanzania as a trusted partner and reiterated Hungary’s readiness to expand cooperation across key sectors, including water, agriculture, education, and technology.
She noted that knowledge exchange and technical collaboration would be central to enhancing efficiency and long-term impact in these sectors.
“Tanzania remains a reliable partner, and we are committed to strengthening cooperation in areas that deliver mutual benefits,” she said, adding that global economic uncertainties make such partnerships increasingly important for resilience.
The Permanent Secretary in the Ministry of Water, Mwajuma Waziri, welcomed the agreement, noting that residents of Biharamulo have long awaited the project’s implementation. She said the signing brings renewed hope for improved water access and socio-economic transformation in the district.
The Biharamulo project reflects a broader trend of infrastructure financing partnerships between Tanzania and international lenders, aimed at closing service delivery gaps while supporting economic growth.
Analysts note that improved water access not only enhances quality of life but also reduces healthcare costs, boosts agricultural productivity, and attracts investment into rural economies. As Tanzania continues to mobilise external financing for strategic projects, the success of initiatives such as Biharamulo will be critical in demonstrating the effectiveness of concessional loans in delivering tangible development outcomes.
