UNCDF Launches Tanzania’s Local Climate Adaptive Facility (LoCAL) Phase II

UNCDF LoCAL phase II launch

On 1st October 2024, the UN Capital Development Fund (UNCDF) launched the second phase of the Local Climate Adaptive Living Facility (LoCAL) in Tanzania with a funding of TZS 33 billion.

This phase will enhance local governments’ capacities in planning, implementing, and monitoring climate adaptation strategies that are responsive to local contexts and gender considerations.

With support from the European Union (EU), Belgium, Ireland, and Norway the second phase aims to deepen the efforts made in Phase I by expanding its reach to an additional four districts and one municipality in the coastal regions of Tanzania addressing ongoing challenges in climate resilience.

According to the UNDP Resident Representative Shigeki Komatsubara, the LoCAL program, with support from the EU and the Government of Sweden, was piloted from 2022 to 2023 in the Chamwino, Mpwapwa, and Kondoa districts of the Dodoma region and benefited more than 800,000 people, particularly women.

The results of LoCAL Phase I include improvements in climate change adaptation infrastructure projects that enhanced access to essential services for over 10,500 people directly in the vulnerable communities of target districts.

Additionally, local governments gained the skills to mobilize and allocate resources more effectively resulting in increased resilience to climate change and strengthened local economies and leading to projects that reflect local needs and aspirations.

During the launch of the second phase, Komatsubara noted that the initiative focuses on implementing locally-led climate adaptation interventions and enhancing awareness and capacities at the local level.

It also integrates climate adaptation into local government planning and budgeting in a participatory and gender-responsive way and establishes a performance-based climate resilience grant system to attract additional financing for local adaptation efforts.

Komatsubara highlighted: “This initiative marks a significant step forward in our UN collective efforts to build local resilience to the impact of climate change and foster sustainable development in our communities.”

“In essence, LoCAL is not only about funding; it is about building capacity, fostering innovation, and ensuring that local voices and participation are at the forefront of climate action. Another significant measure of success is the supplementary finance that can be mobilized, and we will surely welcome and support such efforts.”

On her part, the EU Commissioner for International Partnerships, Jutta Urpilainen pointed out: “The EU is the leading contributor to the local climate adaptive living facility, which is part of the solution: it channels climate finance directly to the local authorities who best understand the local needs.”

The Local Facility Program

The Local Climate Adaptive Living Facility (LoCAL) was designed by UNCDF in 2011 to promote climate change–resilient communities and local economies by establishing a standard, internationally recognized country-based mechanism to channel climate finance to local government authorities in developing countries, particularly Least Developed Countries (LDC)s.

Since LoCAL’s global expansion in 2014, it has engaged with 372 local governments reaching an indirect beneficiary population of over 18 million people via locally-led adaptation investments that build sustainability to the impacts of climate change as experienced at the community level.

Between 2019 and 2023, UNCDF catalyzed US$ 175.5 million in funding for LoCAL with almost 40% (US$ 67.8 million) in 2023.

Until the end of 2023, 38 countries across Africa, Asia the Caribbean, and the Pacific are designing or implementing their LoCAL actions. Some two-thirds of all LDCs are engaged with LoCAL, as are eight small island developing states (SIDS) and 26 African nations.

Want to know more about the Economy in Tanzania? Our free Tanzania Business and Investment Guide 2026 covers the Economy, plus regulations, key sectors, and investment opportunities—all in one place.

Download Free Guide
Related Posts
Tanzania budget 2026 2027 private sector review
Read More

Tanzania Private Sector Embraces 2026/27 Budget Reforms but 10% GDP Growth Needed to achieve Vision 2050

The Tanzania Private Sector Federation (TPSF) and the Confederation of Tanzania Industries (CTI) welcomed several business and tax reforms in Tanzania's 2026/27 Budget, including faster VAT refunds, investment incentives, and regulatory simplification. However, private sector leaders said economic growth will need to accelerate from the targeted 6.3% in 2026 to more than 10% annually to achieve the Tanzania Development Vision 2050 goal of becoming a USD 1 trillion economy.
Tanzania Khamis Mussa Omar Parliament bunge
Read More

Tanzania 2026/27 Budget of TZS 62.33 Trillion Targets 6.3% GDP Growth and Investments in Railways, Offers New Businesses One-Year Tax Holiday

Tanzania's 2026/27 budget is set at TZS 62.33 trillion (USD 24 billion), up 10.3% from the previous financial year, targeting 6.3% GDP growth with 74.2% financed from domestic revenue as grants fall 39.1%. Key investor measures include halving the deemed profit-distribution tax from 30% to 15%, a one-year income tax holiday for newly registered businesses, retained VAT deferment on imported capital goods, and VAT exemptions across compressed natural gas, electric vehicle charging equipment, and LPG infrastructure.
Samia Suluhu Hassan Tharman Shanmugaratnam
Read More

Tanzania and Singapore Sign Double Tax and Other Agreements, TISEZA Hosts Business Forum to Strengthen Trade and Investment

Tanzania and Singapore signed five agreements and memoranda of understanding during President Tharman Shanmugaratnam’s state visit to Tanzania, covering taxation, trade facilitation, public service capacity building and diplomatic cooperation. The two countries also reaffirmed plans to deepen collaboration in investment, digital transformation, logistics, financial services and industrial development as bilateral trade reached USD 74 million and Singaporean investments in Tanzania exceeded USD 535 million.
Kitila Mkumbo Parliament Bunge
Read More

Tanzania Planning and Investment Budget 2026/2027 Backs New Investment Policy and Diaspora Bonds, with Five Strategic SEZs to Draw TZS 797 Billion

Beyond a new National Investment Policy 2026 and five strategic Special Economic Zones expected to draw over TZS 797 billion, Tanzania's TZS 144.85 billion Planning and Investment Budget 2026/27 sets a target to make the country a leading African vehicle producer by 2030 and creates Youth Industrial Special Economic Zones across six regions. Flagship projects already underway include Hengya Cement (USD 530 million), Airtel's USD 480 million 5G rollout, and Songea Sukari's USD 352 million sugar complex.