Tanzania has been named as the second beneficiary, after Madagascar, of a joint initiative launched by the World Bank and International Monetary Fund (IMF) to support efforts to address climate change.
The two Bretton Woods institutions said on October 10 that Tanzania’s inclusion in their Enhanced Cooperation Framework for Climate Action was based on an IMF Resilience and Sustainability Facility (RSF) arrangement for the country that was approved in June and the World Bank’s ongoing engagement with Dodoma on climate action programmes.
They said through the framework, the IMF and World Bank would work with other development partners to support Tanzania’s agenda to build its resilience against the risks and challenges posed by climate change to its social and economic growth.
“This will be done through an integrated, country-led approach to policy reforms and public and private climate investments, including through complementary and well-sequenced reform measures.”
Areas of focus will include climate-resilient public financial management; energy, water and other reforms; disaster risk management and social protection; and supervision of financial sector climate-related risks.
“The IMF will back the introduction of climate resilient public investment regulations and reporting, while the World Bank Group will focus on supporting sectors that help strengthen Tanzania’s resilience to climate change, such as energy, water, social protection, and agriculture.”
The IMF-World Bank Enhanced Cooperation Framework for Climate Action was launched in Washington DC on May 31 this year to help countries scale up action to confront the threat of global climate change.
Madagascar was endorsed as the first beneficiary on June 21.”Within their respective mandates, the World Bank Group and IMF will leverage their analytics, technical assistance, financing, and policy expertise to enhance country-driven climate strategies and reform programs,” they said in May.
The World Bank says it aims to start channelling 45 percent of its annual financing to climate change adaptation and mitigation by 2025.
The IMF, meanwhile, is deploying its Resilience and Sustainability Trust (RST) programme, which became operational in October 2022, for the same purpose of helping countries build resilience to climate change.
Share this news
This Year's Most Read News Stories
Zanzibar airport monopoly puts 600 jobs at risk
On September 14, 2022, the director general of ZAA issued a directive that gave Dnata Zanzibar Aviation Services Limited an exclusive access to the newly constructed Terminal III, barring other operators.Continue Reading
Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
Tanzania’s path to 4Rs: The President Samia’s era
Tanzania has embarked on a journey of resilience, rebuilding, reconciliation, and reform under the leadership of President Samia Suluhu Hassan.Continue Reading
