Nature Fundi: Inclusive Nature Finance for Tanzania

The Southern Highlands of Tanzania face growing environmental degradation, driven by intensive agriculture and expanding value chains, which together are causing soil and water depletion, falling crop yields, and rising food insecurity. This challenge is further complicated by the National Rice Development Strategy, Phase II (2019), which aims to double the land under rice cultivation to 2.2 million hectares and increase productivity to 4 tonnes per hectare by 2030. While well‑intentioned, this planned expansion also heightens risks such as water overuse, soil salinity, chemical runoff and wider land degradation, and may in turn push farmers to encroach on fragile wetlands and forests. At the same time, many smallholders operate under socio‑economic pressures that encourage short‑term, unsustainable practices, and most still lack access to formal financial services, despite growing interest in sustainability‑linked finance.

In this context, community microfinance groups can provide a practical and trusted platform to help drive change, offering revolving funds, capacity building and evidence‑based interventions that support farmers in adopting more sustainable land management practices.

Expected Results

• Evidence and actionable information: Generate data from the Eco‑Credit model involving 5,000 farmers adopting sustainable practices, providing insights for public and private stakeholders.
• Technical approaches and tools: Develop and disseminate an innovative, community‑driven financing model that promotes sustainable farming through local microfinance structures and open‑source tools designed for easy replication.
• Capacity and institutional arrangements: Strengthen TIMAP’s ability to design and manage Eco‑Credit funds, linking local and national financing mechanisms to support long‑term sustainable farming.

Progress so far

• 3,950 farmers adopted climate-smart, nature-positive farming practices and strengthened sustainable livelihoods through improved access to eco-credit.
• 44 community microfinance groups demonstrate commitment to environmental action through collective, locally led initiatives.
• 540,000 hectares of degraded land have been brought under active conservation and ecological restoration.
• 4,000 hectares under sustainable land management by smallholder farmers.
• A landscape analysis for the Mbeya region was conducted through multi-stakeholder engagement with 82 stakeholders.
• Formation of the RUBUKYE Platform (Rungwe, Busokelo, and Kyela Stakeholder Platform) to manage and coordinate the Mbeya Sourcing Landscape.