IMF to boost key projects

IMF to boost key projects

TANZANIA is set to benefit from a soft loan of 1.1 US billion dollars (about 2.5tri/-) from the International Monetary Fund (IMF)’s Extended Credit Facility (ECF) for financing key development projects.

This was revealed during President Samia Suluhu’s meeting with the Managing Director of the Bretton Woods institution, Ms Kristalina Georgieva held recently in the United States.

“The IMF boss said she had received an application for the loan and pledged to work on the same to speed up execution of development projects for the next three years,” Tanzania’s Director of Presidential Communications, Ms Zuhura Yunus, revealed yesterday.

In a televised press briefing on President Samia’s recent visit to the US and Uganda recently, Ms Yunus mentioned some of the sectors to benefit from the loan as agriculture, livestock and fisheries into the blue economy, natural resources and tourism in addition to the informal sector.

On the other hand, Ms Yunus stated that President Samia said Tanzania joins other countries to request the Bretton Woods institution to soften conditions for granting loans to enable countries to realise economic reforms for sustainable development.

During Ms Samia’s visit between April 14 and 26, this year, she also met with the President of the World Bank, Mr David Malpass, in which the institution expressed its readiness to provide 120 US million dollars about (250bn/-) to support the Agriculture Sector Development Programme II (ASDP II).

“The ongoing war in Ukraine has led to increased prices of commodities, particularly wheat and fuel and thus, through the agriculture projects the aim is to enable massive commercial productivity for local consumption and exports to markets in neighbouring countries,” she explained.

On April 15, this year, President Samia was hosted by the Vice-President of United States, Ms Kamala Harris, where they held official talks and reiterated the need for continued bilateral relations which has lasted for the past 60 years.

Ms Samia expressed appreciation to Ms Harris for assistance that Tanzania has been receiving through various projects undertaken by the United States Agency for International Development (USAID).

The Tanzanian leader appealed to the American government to re-enlist Tanzania as among beneficiaries of Millennium Challenge Corporation (MCC) and Feed for Future programmes which were halted in Tanzania in the past few years.

For her part, Ms Kamala hailed President Samia for upholding democratic reforms, economic growth and handling of Covid-19 pandemic. In her press briefing yesterday, the presidential spokesperson also dwelt on the seven Memorandum of Understandings (MoUs) with a combined value of 5.04 billion US dollars (approximately 11.3tri/-), which were signed between Tanzanian companies and institutions and US investors in various areas.

The MoUs aim at fostering trade relations between Tanzania and the United States in attracting investments in agriculture, energy, industry and marketing, among other sectors, and are expected to create 301,110 jobs.

The first MoU was between Tanzania Trade Development Authority (TANTRADE) and US Chamber of Commerce, which seeks to expand trade and investment opportunities between Tanzania and American companies.

“Among others, this also aims at building capacity in market access by addressing barriers and negotiations between the governments of the two countries,” she explained.

Ms Yunus mentioned another agreement as that between Taifa Group of Tanzania and a multinational American company, Northern Feed Company, which specialises in agriculture and trade.

The agreement aims at developing modern agriculture for cereals to reduce dependency on imports and ensure food security particularly on cereals, sugar and edible oil.

She said through the arrangement, the partners are expected to invest between 500 US million dollars and 1 US billion dollars in production of 200,000 tonnes of wheat, 100,000 tonnes of sugar in addition to 150,000 tonnes of sunflower seed oil.

There was also an agreement between the Confederation of Tanzania Industries (CTI) and America’s Corporate Council on Africa (CCA) for investment in large, medium and small scale industries in Tanzania, she remarked.

Ms Yunus explained further that another MoU covered Daya Group Investment Limited (a consortium of companies from the United States and Hong Kong) and American company Wabi International Limited.

“The two companies are looking forward to investing in the tourism value chain. The agreement was signed between the two companies and the Ministry of Investment, Industry and Trade.

“This will enable investors in Arusha, Tanga, Manyara and Mara to increase investments by putting in place modern infrastructure in the tourism industry,” she explained.

The presidential publicist said the companies have committed to invest 350 US million dollars in tourism projects in collaboration with top experts in tourism from the United States.

The experts are drawn from leading tourism investment companies in the US such as Howard Backen Chateau Designer, Toam Doack, Golf Course Designers and Master of Wine Bill Harlan.

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