The Tanzania government has received a grant of 1.4bn/- (approximately $ 596,406) from International Standard Chartered Bank Ltd which will be used to sustain the environment along the third and fourth phase construction line of the Standard Gauge Railway (SGR) project.
This is under the bank’s annual program committed to developing innovative solutions that address climate change crisis and promote a green economy in Tanzania.
The Tanzania Railways Corporation’s Director General Masanja Kadogosa told The Business Wiz that the money will be used to maintain the ecology to avert carbon emissions along the line through which the SGR passes between Makutupora and Tabora then to Isaka covering a total stretch of 427 kilometers.
“The amount has been issued as grant and is part of the $ 1.7 million which the government had lobbied from the International bank during 2022/23 financial year,”
He further elaborated that, apart from maintaining the environment, also the money will be used to compensate people whose properties shall be displaced from within an area targeted for environmental use so as to pave the way for the SGR construction.
The move is in line with the bank’s sustainability strategy that seeks to champion various development initiatives including conservation of environment under its program which promotes green economy in Tanzania.
In July 2022, the International Bank deployed $ 300 billion to champion its green economy program worldwide and transition financing in the next decade.
The bank has also simultaneously sought to cut the emissions associated with its lending to carbon- intensive sectors, such as oil and gas as part of its efforts to reach net zero carbon emissions by 2050 across the world.
Earlier the bank had launched its sustainability report titled, “’Here for Good: A Sustainable Future for
Tanzania” that showcases the bank’s contributions to social, commercial, and environmental opportunities.
Speaking at a grand ceremony event which took place at Hyatt Hotel Kilimanjaro in Dar es Salaam, the
Standard Chartered Bank Tanzania Chief Executive Officer (CEO) Herman Kasekende, “the bank is developing new economies that can deliver sustained prosperity in the coming decades”.
Kasekende noted that the report demonstrates ways in which sustainability practices can drive economic growth and improve the well-being of communities, and protect the environment for future generations.
He further noted that the report is a result of an extensive and thorough analysis of the bank’s major achievements and progress in delivering value for its stakeholders within the United Republic of
Kasekende during the event shared some of the views and key contributions mentioned in the report
for sustainable finance in Tanzania’s SGR project adding that, “upon completion the railway is expected to enhance regional trade which is key in driving the nation’s economic growth”.
The new SGR railway is expected to reduce cargo transportation costs between Dar es Salaam and the Democratic Republic of Congo (DRC) from a minimum of $ 6,000 per ton to about $ 4,000.
Kasekende elaborated that bank has provided 45.3bn/- in financing to Car & General to support their working capital funding, which has enabled the client to maintain an all women run assembly plant and warehouse.