The study examined the role of banking sector in overcoming clean energy adoption challenges in Tanzania. The specific banking roles employed in this study were; bank financing availability (BFA), policy and regulatory authority support (PRA), and bank expertise and capacity (BEC). In line with the three measures of CEA, the study investigates three hypotheses. The explanatory research design and quantitative research approach were applied to achieve the objective of the study. A sample of 100 respondents were invited to complete a standard questionnaire based on extensive evaluations of prior empirical investigations chosen using a simple random approach from a population of banking institutions. The results were estimated using the partial Least Square Structural Equation Modelling (PLS-SEM) method. Findings from the study revealed that bank expertise, policy and regulatory authority and bank financing availability had significant positive relationship with clean energy adoption. Therefore, banks can play a key role in advancing clean energy by investing in training for their loan officers and investment analysts, helping them better understand clean energy technologies, how to evaluate such projects, and the risks involved. They should also back stable and transparent regulatory frameworks, with clear and long-term renewable energy policies that build confidence and attract private investors. In addition, promoting blended finance models that bring together public and private funding can make clean energy projects more attractive and financially viable.
Jastine Katabaro (Wed,) studied this question.