The United Republic of Tanzania is situated in Eastern Africa featuring a coastline of approximately 1,424 km.​ Zanzibar, a semi-autonomous region of Tanzania, comprises the main islands of Unguja and Pemba, along with several smaller islets.

Tanzania's economy has shown resilience, with a projected GDP growth of approximately 6% in 2025, up from an estimated 5.4% in 2024. Agriculture remains a cornerstone, employing about 50% of the workforce, with major exports including gold, tobacco, cashews, sesame seeds, and refined petroleum.

The industrial sector is bolstered by activities such as agricultural processing, mining (notably diamonds, gold, and iron), and manufacturing products like cement and textiles. Services, particularly tourism, play a vital role, with the country’s rich wildlife and cultural heritage attracting many visitors annually.

Overall, Tanzania's diverse geography, and ongoing economic initiatives position it as a dynamic nation with promising prospects for sustainable development.

Climate context

Tanzania faces significant climate change vulnerabilities, particularly in agriculture and infrastructure, and while the country is working to access climate finance, challenges remain in accessing and effectively using these resources. 

The economy and livelihoods are highly dependent on climate-sensitive sectors, especially agriculture, making it vulnerable to extreme weather events like droughts and floods.  Current climate variability already leads to major economic costs, with individual annual events exceeding 1% of GDP, and future climate change could lead to further economic losses. 

Tanzania is not adequately adapted to the current climate and faces a large adaptation deficit, requiring urgent action. 

Climate Finance Access

While Tanzania has made efforts to access climate finance from various sources, it has only managed to access a limited amount.  There's a need for further capacity building on climate change issues, including strengthening the capacity of climate change focal points within sector ministries. 

Green finance markets are still nascent in Tanzania, with limited issuance of green bonds and loans, and an underdeveloped green equity market. Insurance offerings to respond to climate-related shocks are limited, particularly in the agricultural sector. 

National Response and Initiatives

Tanzania launched its National Climate Change Strategy in 2012, covering adaptation, mitigation, and cross-cutting interventions. The government recognizes the need for a climate change financing mechanism and has integrated it into the National Five-Year Development Plan. 

The National Climate Change Response Strategy provides room for Local Climate Financing, but the implementation of main actions largely depends on accessing international climate finance.  Tanzania is exploring the use of fiscal instruments like taxes, levies, and subsidies to mobilize domestic financial resources for climate action. 

The Parliamentarians for Climate Finance project can support Tanzania's efforts by enhancing legislative oversight, increasing political will, and building the capacity of lawmakers to engage effectively with climate finance mechanisms. This can help ensure that climate funding is better accessed, allocated, and used to deliver tangible benefits for communities most at risk.