The European Union (EU) has promised to provide two trillion Shs in aid to the Government of Tanzania, for the implementation of development projects including promoting the blue economy.

The Tanzanian ambassador to Belgium, Luxembourg and the European Union (EU), Jestas Nyamanga, said this while speaking to journalists via Zoom.

Nyamanga said Tanzania has agreed that the funds should be used in the blue economy sector which is the current agenda of the country and the union has already agreed to provide 140 million Euros for that purpose.

"Of the 140 Euros, we have agreed that 130 Euros will be deposited in the bank as a guarantee, because if you tell our banks you want to borrow to invest in the marine park and fisheries, it is very difficult to give you that guarantee and loans," he said.

Ambassador Nyamanga said that due to this situation, they saw that the money from the EU should be deposited in the bank so that Tanzanians can borrow it from the bank and invest in those areas.

He encouraged Tanzanian banks to see this as an opportunity and donate the money to be deposited in their banks for lending.

Ambassador Nyamanga said that some of the funds will also be used to develop policies on the continent and regulations, but 90 million Euros will be for entrepreneurs who want to invest in the blue economy sector.

"Those who want to invest in fishing, water transport, beaches and tourism should prepare a good loan proposal and invest in this blue economy sector," he said.

He warned that the funds will not be limited to the use of Tanzania only but can be taken by anyone from any country who wants to invest in the country.

The ambassador said that they have also agreed that the EU will provide 75 million euros for the implementation of a project to improve the environment and make green cities that will be implemented in three cities which are Mwanza, Tanga and Pemba.

He said the procedures for the implementation of the project are ongoing and the councils and municipalities in the respective cities should prepare plans, proposals and good strategies that will show how they will use the funds to change the appearance of the cities.

In addition, he said there will also be 35 million Euros for the improvement of digital systems and changing information technology systems.

Also, there will be 70 million Euros to support gender issues.

The Ambassador said that the union has also started a program called Global Gateway Investment Parkage, which has been allocated 150 billion Euros for African countries.

He said that the availability of these funds does not depend on the quota but depends on how the country developed its investment project.

Ambassador Nyamanga said the funds will be used for bank guarantees and lending to investors who want to invest in various areas, whereas in Tanzania the funds have been directed to the blue economy area.

"Now I ask Tanzanians to use these funds to prepare big projects that will affect the blue economy," he said.

He said that Africa has also prepared 11 corridors that touch the infrastructure area and Tanzania has been given two corridors that any infrastructure project that will touch them, will benefit from the funds of 150 billion Euros. Those corridors are Dar es Salaam, Nairobi and Addis Ababa and Mbeya and Kasama, Zambia.

Ambassador Nyamanga said through the African Caribbean and Pacific Community (OSPS) of which Tanzania is a member, the country has been elected as chairman from this year to 2024 in matters of fisheries and agriculture.

The community has a total of 79 members.