In June 2025, the World Bank approved a $300 million Development Policy Financing operation for Tanzania, including $100 million budget support and a $200 million Cat-DDO—a financial instrument that offers immediate liquidity in the event of a disaster. This $300 million credit aims at strengthening the country’s economic resilience as well as its technical, financial, and institutional capacity to manage climate, fiscal, and disaster risks. But beyond financing, this milestone marks a major step in Tanzania’s long-term resilience journey which GFDRR has supported for over a decade through both financial and technical assistance.

More than a line of credit, the Cat-DDO is also a reflection of a government’s commitment to integrate disaster and climate risk management into national policy and planning. For Tanzania, that meant undertaking ambitious reforms across multiple sectors, from water and energy to urban development and public financial management. GFDRR’s support contributed to laying the groundwork for these reforms and helping the government meet the readiness criteria required to access the Cat-DDO.

For example, GFDRR provided targeted assistance to strengthen the policies, institutions, and systems that underpin disaster risk management in Tanzania. This included advisory services, institutional diagnostics, and legal and technical reviews that shaped the resilience components of the Cat-DDO program. One of GFDRR’s key contributions was its support for the development and revision of three major policy instruments: the National Water Policy, the Zanzibar Water and Sanitation Policy, and the Zanzibar Energy Policy. These instruments now embed risk considerations into planning, regulation, and investment decision making as they guide billions of dollars in public and donor-financed projects.

Another important aspect of GFDRR’s support was its contribution to risk-informed planning guidelines for urban development schemes. By ensuring that hazard exposure and climate projections are systematically considered in land use and utility planning, these guidelines help reduce future vulnerability in rapidly growing towns and cities.

GFDRR also provided input in defining the disbursement indicators and institutional benchmarks that trigger Cat-DDO financing. This work ensured that the financing mechanism is not only available in times of crisis, but also incentivizes continuous progress on resilience-building measures. In practice, this means that sector ministries—such as those responsible for water and energy—are now better equipped to assess risks, screen projects, and manage resources more effectively during emergencies.

This progress builds on GFDRR’s long-term engagement with the government of Tanzania to assess and improve its legal, policy, and institutional frameworks for disaster risk management. For example, GFDRR supported the implementation of a new policy that helps operationalize the country’s 2022 Disaster Management Act, which sets clear national priorities and strengthens coordination across ministries, agencies, regional governments, and the private sector. It removes barriers that previously hindered timely and coordinated disaster responses, resulting in a more agile and effective system.

Tanzania’s wide-ranging reform efforts in sectors such as water, energy, and health were central to securing the Cat-DDO, which is expected to benefit 1.9 million people across the country. The approval of the Cat-DDO reflects Tanzania’s steady progress in integrating resilience into its institutions and investments over the years. It also highlights the value of long-term partnerships in turning policy ambition into practical systems for disaster risk management. With support from GFDRR, Tanzania has strengthened the foundations needed not only to access crisis financing, but also to reduce its reliance on it over time. As climate and disaster risks continue to evolve, the country is now better positioned to anticipate shocks, protect its development gains, and invest in a more resilient future.