NMB Bank unveils Sh100 billion loan for clean cooking
Deputy Prime Minister and Minister for Energy, Dr Doto Biteko (second left) claps hands during the launch of a special loan to promote clean cooking energy in Dar es Salaam over the weekend. From left is NMB Bank’s CEO, Ms Ruth Zaipuna, Finance Minister, Dr Mwigulu Nchemba and NMB Bank’s Chief Retail Banking, Filbert Mponzi. PHOTO | CORRESPONDENT
What you need to know:
- Deputy Prime Minister and Minister of Energy Dotto Biteko, said the initiative would help transition many Tanzanians from polluting fuels to sustainable alternatives.
Dar es Salaam. NMB Bank has introduced a Sh100 billion loan facility to support clean cooking initiatives in Tanzania, aligning with the government’s green agenda.
Speaking in Dar es Salaam over the weekend, CEO Ruth Zaipuna announced that the loans would carry an annual interest rate of 12 percent. Individual borrowers can access up to Sh1 billion from any NMB branch nationwide.
Gracing the event, the Deputy Prime Minister and Minister of Energy Dotto Biteko, said the initiative would help transition many Tanzanians from polluting fuels to sustainable alternatives.
Official data indicates that only 16 percent of Tanzanian households currently use clean cooking sources. This signals a rise from just less than 10 percent two years ago.
“This facility is a significant milestone for the renewable energy sector. It aligns with President Samia Suluhu Hassan’s vision of ensuring universal access to affordable and sustainable energy,” Dr Biteko said.
According to Ms Zaipuna, the financing targets distributors and agents of gas cylinders and stoves, the most accessible clean energy solutions in the market. She said the initiative supports the National Clean Cooking Energy Strategy, which aims to increase clean energy adoption while promoting environmental conservation and economic growth.
In May, 2024, Tanzania launched its ten-year National Strategy for Clean Cooking Energy (NSCCE-2024-2034), seeking to achieve 80 percent adoption of safe fuels by the year 2034.
Dr Biteko noted that progress had been made, including subsidies exceeding Sh36.64 billion for public institutions to comply with bans on firewood and charcoal. The government, through the Rural Energy Agency (REA), has distributed 110,000 gas cylinders and plans to distribute 452,445 more. Additionally, over 200,000 subsidised energy-efficient stoves will soon be available. Finance Minister Mwigulu Nchemba noted that President Hassan is actively promoting clean energy internationally, where her efforts have been widely acknowledged.
Ms Zaipuna underscored the urgency of addressing the lack of access to clean cooking energy, citing data showing over 600,000 women and children die annually from smoke-related illnesses, with Tanzania accounting for over 33,000 deaths.
To support its financing efforts, NMB Bank will conduct an awareness campaign through its Village Day platform, focusing on rural communities that rely heavily on firewood and charcoal. The bank has partnered with Taifa Gas to expand education on clean cooking to over 2,000 villages nationwide.
NMB Bank has also launched partnerships to encourage clean energy adoption. Customers using NMB Mastercard to purchase Oryx gas through agents will receive a 10 percent discount.
The initiative is expected to play a key role in advancing Tanzania’s clean energy transition and reducing health and environmental risks associated with unclean cooking energy.
