IN a significant move to address Tanzania's energy challenges and support the government's green agenda, NMB Bank has launched a 100bn/- loan facility aimed at promoting clean cooking solutions.

Announced by NMB CEO Ruth Zaipuna in Dar es Salaam, the initiative offers loans at a competitive interest rate of 1% per month (12% annually) to encourage adoption among Tanzanians. Borrowers can access up to 1bn/- from any NMB branch nationwide.

CEO Zaipuna emphasized the urgency of addressing unclean cooking energy's detrimental effects, citing data showing over 600,000 annual deaths in Africa from smoke-related illnesses, including 33,000 in Tanzania. 

The initiative also supports UN Sustainable Development Goal 7, promoting access to modern, affordable, and sustainable energy.

To complement the loan program, NMB will launch an awareness campaign, leveraging its Village Day platform to educate rural communities, where reliance on firewood and charcoal is highest. Partnering with Taifa Gas, the bank plans to reach over 2,000 villages nationwide this year.

The government’s efforts to promote clean cooking energy include subsidies exceeding 36.64bn/- for public institutions and the distribution of 110,000 gas cylinders to regions across the country. Plans are underway to provide an additional 452,445 subsidized gas cylinders and 200,000 energy-efficient stoves.

Launched in May 2024, Tanzania’s clean cooking energy blueprint aims to achieve 80% adoption of safe fuels within a decade. 

Deputy Prime Minister and Minister of Energy, Doto Biteko, praised NMB for aligning with President Samia Suluhu Hassan’s vision of universal access to sustainable energy. 

He highlighted that only 16% of Tanzanian households currently use clean cooking sources, underscoring the importance of the initiative. The loans will primarily benefit distributors and agents of gas cylinders and stoves, currently the most accessible and environmentally friendly energy solutions.

“This initiative marks a significant milestone for the renewable energy sector, supporting the National Clean Cooking Energy Strategy to ensure affordable and sustainable energy for all,” Biteko stated. 

He noted that clean cooking solutions would reduce reliance on harmful fuels, mitigate health risks, and advance Tanzania's economic and environmental goals.

Dr Biteko noted that this initiative would not only improve health and reduce environmental degradation but also foster sustainable growth.

Finance Minister Mwigulu Nchemba also added that President Samia is actively championing the clean cooking agenda internationally, with her efforts gaining widespread recognition. The NMB loan program is expected to play a pivotal role in advancing this agenda and delivering eco-friendly benefits nationwide.