WASHINGTON, June 11, 2025 —The World Bank has today approved two new projects that will support Tanzania in enhancing the sustainable management of its marine resources and in strengthening climate resilience at national and local levels. This new financing—amounting to a total of $227 million in grants and credits—will improve natural resource management, secure livelihoods, and improve economic opportunities.
The new Tanzania Scaling-Up Sustainable Marine Fisheries and Aquaculture Management Project (TAFSAM) aims to enhance the sustainable management of marine resources and improve economic opportunities for targeted beneficiaries, backed by $112 million in credit from the International Development Association (IDA*) and a $5 million grant from the PROBLUE Multi-Donor Trust Fund.
The Scaling-Up Locally Led Climate Action Program (SCALE) will strengthen national and local government systems to increase climate resilience and invest in locally led climate action in selected districts. SCALE is supported by a $100 million IDA credit and a $10 million grant from Social Sustainability Initiative for All Umbrella Multi-Donor Trust Fund.
"These two initiatives create a more holistic response to climate change—protecting both natural ecosystems and the people who depend on them,” said Nathan Belete, World Bank Country Director for Tanzania, Malawi, Zambia and Zimbabwe. “They will leverage strategic investments and partnerships to strengthen policies, improve management practices, and drive innovation in marine conservation and fisheries to create a thriving ocean economy for the prosperity of all Tanzanians."
Fishing and aquaculture are key to Tanzania’s economy, contributing 1.8% to mainland's GDP and 4.8% to Zanzibar's. Around 430,000 people work directly in these sectors, while over 4.5 million rely on related jobs like processing, marketing, and sales. Fish is also a key part of the diet, providing 30% of daily animal protein on the mainland and 90% in Zanzibar. As Tanzania’s population grows from 61.7 million to 77.7 million by 2030, the demand for fish is expected to double. Seaweed farming, the main marine aquaculture activity, employs 25,000 people, 80 percent of whom are women. It is also Zanzibar’s third largest export. However, the sustainability of these resources is threatened by overfishing and climate change. These trends make the TAFSAM project both timely and relevant to the sustainability of marine resources in Tanzania.
SCALE will use a Program for Results (PforR) approach, where funding is tied to achieving specific results, and focuses on two key areas. First, it will strengthen local government systems to plan, implement, and monitor climate resilience efforts. This includes setting up multi-sectoral District Climate Action Teams, raising awareness about local climate risks and solutions, and helping communities develop local climate action plans. Second, it will support the implementation of these plans, with communities selecting the investments they need most. The program also includes support for strengthening institutions, capacity building, and improving national data systems.
Around 6.6 million people—nearly 10% of the country’s population—are expected to benefit directly from the program.
Additionally, while SCALE is national in scope, it will support alternative livelihoods for communities living around protected areas by promoting sustainable development and conservation. Beneficiaries will select community-based and demand-driven activities, such as ecotourism, agroforestry, beekeeping, handicraft making, establishment of community conservation banks, fodder production, reforestation, setting up water-efficient irrigation systems and alternative energy sources.
Tanzania has experienced more than 65 major natural disasters over the past two decades, namely floods and droughts that cause economic losses of US$170 million each year on average. Recent events, including three cyclones and El Niño rains, have led to the deaths of 155 people, affected the lives of over 200,000 people, and resulted in US$368 million in damages. In Dar es Salaam alone, flooding in 2018 cost an estimated US$100 million, or about 2 percent of GDP. With drought affecting an estimated 4.8 million people annually, adaptation measures are needed to reduce future climate-related economic losses.
*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
