WASHINGTON, June 5, 2025 — An estimated 1.9 million Tanzanians will benefit from strengthened disaster preparedness and response capabilities through new World Bank Group financing. The $300 million credit, which includes a $100 million Development Policy Financing (DPF) as budget support and $200 million allotted to a Catastrophe Deferred Drawdown Option (Cat-DDO) from the International Development Association (IDA)*, aims at strengthening economic resilience as well as the technical, financial and institutional capacity to manage climate, fiscal and disaster risks in the country.
Tanzania faces increasing exposure to disasters due to its growing population and economy. Recent cyclones, such as Kenneth (2019) and Jobo (2021), along with El-Niño rains and Tropical Cyclone Hidaya (2023–2024), caused 155 deaths, affected over 200,000 people, and resulted in $368 million in damages. Therefore, strengthening Tanzania’s economic resilience is a crucial priority to address disaster related risks in addition to investing in resilient infrastructure to enhance mitigation. In order to ensure sustainability of these investments, the government aims to strengthen economic resilience through fiscal and debt sustainability by improving institutional, financial, and regulatory frameworks and increasing fiscal transparency among other reforms.
“Tanzania is making steady progress to handle climate related disasters but needs to double down on its resilience agenda through multi-sectoral coordinated policy reforms to ensure long term sustainability,” said Nathan Belete, World Bank Division Director. “The new financing will help support the implementation of the climate and disaster risk management policy framework including strengthening coordination and deepening capacities of the institutions responsible in implementing disaster management interventions.”
The new reform program comprises three key pillars. The first pillar, Strengthening Institutional and Financial Capacity for Disaster Preparedness and Response, aims to strengthen the organized disaster response capabilities of the health and disaster risk management sectors, promote the establishment of flood early warning systems (FEWS) and decision support in key flood-prone basins to safeguard at-risk populations, and allocate additional dedicated resources to the Contingency Fund. The second pillar, Mainstreaming Disaster Risk Management in Key Sectors, aims to incorporate resilience and risk prevention principles into the planning, decision-making, and management of essential infrastructure and services through risk-informed urban planning and bolstering the resilience of Zanzibar’s water and energy sectors. The third pillar, Enhancing Economic Resilience and Establishing Foundations for Carbon Market Access, supports Tanzania’s economic resilience by strengthening institutional, financial, and regulatory frameworks, and enabling access to global climate finance through carbon markets.
“The economic costs from direct damage to infrastructure, loss of property, and the interruption of economic activities caused by climate related disasters are immense requiring immediate intervention. The project will provide robust policy framework and critical contingent financing to the country to help the government respond to emergencies quickly and effectively,” said Yohannes Kesete, World Bank Senior Disaster Risk Management Specialist and Task Team Leader.
The preparation of the Cat-DDO has benefited from technical and financial support leveraged through the Global Facility for Disaster Reduction and Recovery (GFDRR).
*The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 74 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.3 billion people who live in IDA countries. Since 1960, IDA has provided $496 billion to 114 countries. Annual commitments have increased steadily and averaged about $34.7 billion over the last three years (FY20-FY22), with about 70 percent going to Africa. Learn more online: IDA.worldbank.org. #IDAworks
