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AfDB earmarks $107.8m for Tanzania


A loan of $107.8 million has been approved by the Board of Directors of the African Development Bank Group to Tanzania. The purpose of the loan is to strengthen governance, industrial competitiveness, and social inclusion in the country. The funds will support Tanzania’s Economic Competitiveness and Social Inclusion Programme (ECSIP), which aims to facilitate the sustainable recovery of Tanzania’s economy from the impacts of both the Covid-19 pandemic and Russia’s invasion of Ukraine.

The ECSIP consists of three main components. Firstly, it will promote reforms that enhance domestic resource mobilisation and strengthen public expenditure and procurement systems. Secondly, the program aims to improve the management of environmental resources and the investment climate. Lastly, it seeks to enhance social protections and livelihoods of vulnerable groups, including small and medium enterprises, women, and youth.

Patricia Laverley, the Tanzania country manager of the Bank Group, highlighted that the loan will facilitate policy dialogue among development partners on several key areas such as domestic resource mobilisation, public financial management reforms, anti-money laundering measures, counter-terrorist financing measures, industrial development, competitiveness, and social protection through reprioritisation of public expenditures in Tanzania.

While the African Development Bank has supported Tanzania in implementing reforms over the past decade, which have contributed to the country’s attractiveness for business and investment, the global economic challenges have hindered Tanzania’s fiscal progress. The average growth rate, which was nearly 7% prior to the pandemic, is estimated to have slowed down to 4.8% in 2022.

The ECSIP is expected to directly benefit various government ministries and entities, including the ministry of community development, gender, women and special groups, as well as the revenue and public procurement regulatory authorities. Furthermore, businesses across mainland Tanzania and Zanzibar will have increased access to investment opportunities, enabling them to expand. The ECSIP aligns with the bank’s strategies for Tanzania, economic governance in Africa, and climate change and green growth action plan.

As of 28 February 2023, the African Development Bank’s portfolio in Tanzania included 21 sovereign and three non-sovereign operations, with a total commitment of $2.65 billion. The majority of these operations, accounting for 86%, are in the infrastructure sector, particularly in energy, transport, and water and sanitation.

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