Good morning! The Chanzo is here with a rundown of major news stories reported in Tanzania on March 19, 2025.
Zanzibar among East African cities to benefit from EIB global’s assistance to develop climate-resilient urban projects
The European Investment Bank (EIB Global) has availed over €1.2 million –about Sh3.5 billion– in technical assistance support to cities in East Africa for preparation of climate resilient urban development projects.
The cities set to benefit from this technical assistance are Zanzibar in Tanzania as well Kericho, Nyamira, Kisumu, Embu, Eldoret and Malindi in Kenya and Makindye in Uganda.
Financed through the City Climate Finance Gap Fund, a multi-donor trust fund supported by Germany and Luxembourg and implemented jointly with the World Bank and in close partnership with German Development Cooperation (GIZ), EIB Global’s support to cities focuses on early-stage project preparation with an aim of facilitating access to finance for urban projects that would otherwise potentially remain at idea stage.
A statement released Wednesday said that most of the support for the cities in the region will revolve around assessing options for managing solid waste and faecal sludge, waste to energy solutions through production of biogas and wastewater treatment. Preliminary proposed solutions have recommended integrated solid waste management. Read the full article here.
CCM denies allegations of using state apparatuses to remain in power, counts election victories on its ‘acceptability’ among electorates
The ruling Chama Cha Mapinduzi (CCM) denies allegations that it relies on state apparatuses to further its political goals, including winning elections, asserting that its electoral victories stem from its popularity among the electorate and the opposition parties’ lack of preparedness to win.
During an interview with The Chanzo, Ally Salum Hapi, a senior official of CCM and member of the party’s National Executive Committee (NEC), stated that Africa’s second-longest-ruling party does not require the assistance of state apparatuses, as it is the only political party in Tanzania with a large number of card-carrying members and a well-established presence at the grassroots level.
“Just recently, our Secretary-General, Dr Emmanuel Nchimbi, informed the public that, as of now, CCM has over 12.1 million members who have registered electronically,” said Mr Hapi, Secretary-General of CCM’s Parents’ Wing. “In the upcoming 2025 elections, it is expected that 31 million voters will participate. CCM already has a base of 12 million members. That’s just members—we haven’t even counted followers and supporters.”
Claims that the ruling party uses state apparatuses—chiefly the police, election management bodies, and the office of the party registrar, to name a few—to further its electoral aims have been prevalent in Tanzania at least since the country held its first multiparty elections in 1995. During this time, CCM has been accused of weaponising its incumbent status against its competitors. Read the full article here.
Tanzania-Zambia (TaZa) power transmission project in progress
The Tanzania-Zambia Transmission Interconnector Project, supported by the European Union (EU), the World Bank, and the French Development Agency (AFD), is already in progress. This was highlighted during a visit by the Parliamentary Committee for Energy and Minerals to Iringa, accompanied by Deputy Minister of Energy Judith Kapinga.
It was noted that the government has allocated Tsh 21.4 billion as compensation for 6,279 residents affected by the project. So far, 5,929 residents have received their payments.
“This is one of the strategic projects in our country and we had several meetings in the government to ensure this project is completed in time,” said Judith Kapinga.
The total cost of the project is reported to be SDR 428, 567,701 which includes USD 455,000,000 from the World Bank, EUR 100,000,000 from AFD, EUR 26,000,000 from EU, and USD 10,000,000 from the Tanzania government.
The project involve the construction of a 400kV double circuit 616km transmission line from Iringa via Kisada, Mbeya, Tunduma to Sumbawang. Construction of 400/220/33kV grid substations in Iringa, Kisada, Mbeya, and Tunduma and 400/220/66/33kV in Sumbawanga. As well as the construction of Tunduma 400/330kV auto-transformation switchgear and 4km of 330kV transmission line (constructed at 400kV but energized at 330kV) from the new Tunduma 400/220/33kV substation to the border with Zambia to connect to the Zambian 330kV grid.
The project is implemented by three contractors, two Chinese firms: TBEA which implement the construction of Lot 1 (Iringa-Kisada) and Lot 3 (Mbeya – Tunduma) and Sinohydro Corporation Limited which will implement the construction of Lot 4 (Tunduma-Sumbawanga) as well as an Indian firm TransraiL Lighting Company that implement the construction of Lot 2 (Kisada – Mbeya).
Interest rate caps in africa: A barrier or boon to economic freedom?
On November 8, 2024, Uganda’s Parliament enacted a law capping interest rates for moneylenders at 2.8 per cent per month and 33.6 per cent per annum. Lately, interest rate caps have become a popular policy tool in several African countries. This tool is currently used by at least 17 African countries to shield borrowers from exploitative practices by moneylenders.
However, such restrictions often lead to unintended consequences, including limited financial innovation, increased informal lending, and reduced credit availability for small businesses and individuals perceived as high-risk. To address these problems, governments should promote financial literacy, encourage investment in alternative lending models, and adopt tiered interest rate structures.
Interest rate caps, while aimed at protecting borrowers, can undermine economic freedom by restricting credit access for high-risk and marginalized groups. Standardising rates without considering borrower risk profiles discourages lenders from serving vulnerable populations like rural entrepreneurs and small-scale traders, which worsens financial exclusion.
In Kenya, for example, the Banking (Amendment) Act of 2016 capped the lending rate at four percentage points above the central bank rate, while the deposit rate was set at 70 per cent of the same rate. Commercial banks, constrained by the cap, opted to focus on lending to large, established businesses instead of small-scale traders or rural entrepreneurs. By 2019, Kenya repealed the law due to its detrimental impact on financial inclusion. Read the full analysis here
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