Tanzania Gets USD 211 Million Loan From AfDB For Water And Sewerage In Arusha City

tanzania-arusha-AfDB-water-sewerage

The African Development Bank (AfDB) has recently approved a USD 211 millions loan for improvements on water and sanitation services to decrease health care costs associated with water-related illnesses in Arusha, northern region of Tanzania.

The program’s investment totals USD 235 millions, of which the Tanzanian Government is funding USD 24 millions.

The program aims at Arusha since it is one of the largest and fastest growing cities in Tanzania in terms of population.

Tanzania Investment Guide 2026 Free Edition

At an average yearly rate of 7.4% in the last three years, Arusha’s population has grown from 416,442 in 2012 to 516,000 at the end of 2014 according to Arusha Urban Water Supply and Sewerage Authority (AUWSA) statistics.

So far, AUWSA has expanded its service area from 93 square km in the year 2000, to 208 square km as of 2014.

However it needs improvements in existing water sources to reduce the gap between water demand and supply estimated in 93,270 cubic meters per day and 35,000 – 45,000 cubic meters per day.

In addition, the current 33,106 water supply connections only serves 70.4% of the population in the Central Business District while the overall coverage is below the 44% according to the AfDB.

Regarding to sewerage connections, the current 4,191 connections representing 33 km of piped sewerage only help to serve 3.9% of Arusha’s population according to AUWSA’s last annual report.

TanzaniaInvest Capital Markets Report Banner

With the current fund raised, AUWSA expects to successfully expand water and sewerage networks to cover the whole city and to reach a safe disposal of waste and water.

Want to know more about Construction in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Construction, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources, and is also available at no cost upon completion of a short form.

Download Free OverviewGet the Full Edition for Free
Related Posts
Tanzania e-Ardhi digital land system titles
Read More

e-Ardhi System Lets Tanzanians Sign Land Titles From Any Region

Tanzania's digital e-Ardhi system now allows citizens to access land services and sign their title deeds from any region, without travelling to the region where the service originated. The platform, run by the Ministry of Lands, covers planning, surveying, allocation, registration and valuation and is already in use in Dodoma, Arusha, Tanga, Mbeya and Mwanza.
Tanzania land survey developed areas
Read More

Tanzania Cuts Land Survey Fee to TZS 130,000 per Plot

Tanzania has cut the cost of planning and surveying a single plot in developed areas to TZS 130,000 under the 2021 Regularization Guideline, down from between TZS 250,000 and TZS 400,000. The reduction extends a decade-long trend of lowering fees to encourage urban landholders to formalize property titles.
Tanzania Abdallah Ulega Parliament bunge
Read More

Tanzania Works Budget 2026/27: USD 949 Million for Infrastructure, PPPs and Bonds Open to Investors

Tanzania’s Ministry of Works proposes a TZS 2,467.3 billion (approximately USD 949 million) development budget for the fiscal year 2026/27, tabled in Parliament on 20 May 2026 by Minister Abdallah Ulega, covering roads, bridges, airports, ferries, and government buildings, with 37% from external financiers. The budget opens a PPP pipeline across roads, real estate, and transport infrastructure, and introduces infrastructure bonds on strategic economic corridors as financing instruments available to private investors.