Tanzania moves to bolster tea farming and other major crops grown in the Southern Highlands

MBEYA: THE Tanzanian government has put in place strategies to strengthen the infrastructure sector and accelerate economic growth, particularly in productive sectors such as tea farming and other crops produced in the Southern Highlands.

The Minister for Finance, Ambassador Khamis Mussa Omar, said this yesterday when he visited the Mbeya Regional Commissioner’s Office to conclude the Nane Nane celebrations held at the John Mwakangale grounds in Mbeya City.

He said the government was committed to ensuring that funds for infrastructure projects are made available reliably and on time to facilitate efficient implementation of the projects.

According to the minister, delays in the disbursement of funds for development projects have been a longstanding challenge, resulting in delays in the implementation of some road projects and other infrastructure considered critical to the economy.

However, he said the government had introduced systemic reforms in the financing of such projects by deciding that 70 per cent of revenue collected through special development funds would be channelled directly to the respective funds rather than passing through the Treasury.

“In July alone, a total of 324bn/- was released to various development funds, of which 76bn/- was transferred directly to the Road Fund. This arrangement will continue throughout the financial year to ensure that infrastructure projects are not stalled due to funding shortages,” he said.

He said the measure was aimed at ensuring timely implementation of infrastructure projects while reducing challenges associated with delayed funding.

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Ambassador Omar further said the government was working with the financial sector to explore alternative sources of financing that would enable large amounts of funds to be mobilised earlier for major infrastructure projects.

He cited infrastructure bonds as one of the financing mechanisms that could be used to increase the availability of funds for major projects without relying solely on the gradual collection of domestic revenue.

He said reliable infrastructure, particularly roads, was critical to stimulating productive activities because it enables farmers to transport their produce to markets more easily and at lower cost.

The minister said the government would continue investing in transport infrastructure to improve efficiency across agricultural value chains and strengthen economic activities in the Southern Highlands and other parts of the country.