Dar es Salaam, Tanzania
The Tanzania Climate Finance Roundtable 2026 highlighted the urgent need for innovative financing solutions to bridge the country’s climate finance gap, with the microfinance sector emerging as a key vehicle for delivering climate investments directly to communities, smallholder farmers, women entrepreneurs, and rural businesses.
Bringing together government officials, development partners, financial institutions, private sector actors, and climate finance experts, the forum focused on practical pathways for mobilizing resources to support Tanzania’s climate resilience and sustainable development agenda.
Speaking during the roundtable, government leaders underscored the importance of strengthening national climate finance systems, increasing investment-ready projects, and creating enabling environments that attract both domestic and international finance. Participants agreed that while significant funding is needed to support Tanzania’s climate commitments, success will depend on ensuring that climate finance reaches the people and enterprises most vulnerable to climate change.
Microfinance: The Missing Link Between Climate Funds and Communities
A key message from the roundtable was that microfinance institutions (MFIs) are uniquely positioned to serve as effective channels for climate finance distribution due to their extensive outreach, deep community relationships, and understanding of local economic realities.
Through tailored green loan products, MFIs can support investments in:
- Solar-powered irrigation systems for agriculture
- Climate-smart farming technologies
- Clean cooking solutions
- Solar home systems and productive-use energy technologies
- Environmental conservation and tree-planting initiatives
- Small green enterprises that contribute to emissions reduction
Stakeholders emphasized that expanding climate finance through microfinance can accelerate adoption of clean technologies while improving livelihoods, enhancing resilience, and creating sustainable economic opportunities across Tanzania.
Contribution of TAMFI in Green Financing
As the national umbrella body for the microfinance industry, the Tanzania Association of Microfinance Institutions (TAMFI) has been at the forefront of promoting climate finance and renewable energy lending among its members.
Since 2021, through support from the C.S. Mott Foundation, TAMFI through DREEM (Distributed Renewable Energy Ecosystem Model ) has worked closely with member institutions in these key ecosystem pillars:
- Skill development
- Enterprise incubation
- Energy/solar innovation
- Renewable Energy Financing
- Policy intervention.
These pillars helped to develop and strengthen renewable energy financing products that expand access to clean energy solutions for underserved communities.
Today, more than 14 member MFIs are actively engaged in renewable energy financing initiatives supported by TAMFI, demonstrating the growing commitment of the microfinance sector to climate action and sustainable finance. (Clemence: please add details on the impacts – beneficiaries and capital mobilized)
Building Partnerships for Scale
Recognizing that financing alone is not sufficient, TAMFI has facilitated strategic partnerships between financial institutions and reputable renewable energy technology providers through a collaborative financing approach that links lenders, suppliers, and end users.
Under this model, member institutions have established partnerships and signed agreements with leading renewable energy suppliers, including Simusolar, Davis & Shirtliff, and Solar Sisters, enabling clients to access both financing and quality-assured technologies.
These partnerships have expanded financing for a range of renewable energy products, including:
- Solar water pumps
- Solar lighting systems
- Solar refrigerators
- Solar panels
- Other productive-use clean energy technologies
The model helps reduce risks for both lenders and borrowers while ensuring reliable access to technologies that improve productivity and resilience.
Creating Awareness and Driving Demand
To accelerate the adoption of renewable energy technologies, TAMFI has also taken an active role in community outreach and awareness creation. Working alongside member institutions, the Association has supported education campaigns in communities where renewable energy loans are being offered.
These efforts have helped increase understanding of the benefits of clean energy technologies and strengthened demand for green finance products among households, farmers, and entrepreneurs.
From renewable energy financing initiatives in regions such as Rukwa, Kilimanjaro, Manyara, Mara to community-based energy uptake programs in Zanzibar, member institutions are demonstrating how microfinance can successfully support the transition to a greener and more climate-resilient economy.
Looking Ahead
The 2026 Climate Finance Roundtable reinforced the importance of stronger collaboration among government, development partners, private sector actors, and financial institutions in addressing climate challenges.
For the microfinance sector, the opportunity is clear. With continued investment in capacity building, innovative financing models, technology partnerships, and community awareness, MFIs can play a transformative role in delivering climate finance where it matters most.
As Tanzania advances its climate and development ambitions, TAMFI remains committed to supporting its members in expanding green lending portfolios, strengthening climate finance capabilities, and ensuring that sustainable finance reaches millions of Tanzanians seeking to build more resilient livelihoods and communities.
The future of climate finance will not be determined only by the amount of money mobilized, but also by how effectively it reaches the last mile. Through its members and partners, TAMFI is helping ensure that climate finance delivers real impact on the ground.