Tanzania receives 2.8tri/- war chest
DAR ES SALAAM: TANZANIA is set to receive 2.8tri/- from the World Bank (WB) for two new financing operations: The Development Policy Financing (DPF) operation and phase two of the Dar es Salaam Metropolitan Development Project (DMDP).
In a statement released on Thursday, the WB Board of Executive Directors approved 750 million US dollars (about 1.88tri/-) for the DPF, which will support private-sector-led recovery in Tanzania.
Meanwhile, the board endorsed 385 million US dollars (about 964.4bn/-) for phase two of the DMDP to improve urban services, institutional capacity and climate resilience in Dar es Salaam.
The Tanzania Second Inclusive and Resilient Growth Development Policy Financing, which builds on the success of the first DPF approved in December 2022, will leverage the International Development Association (IDA).
This is intended to address longer-term structural challenges that have hampered economic growth and unleashed private sector-driven recovery by providing a significant boost to ongoing reforms aimed at improving the business climate, strengthening the management of StateOwned Enterprises (SOEs), improving transparency and fostering economic resilience.
“We commend the government of Tanzania for adopting reforms to foster more inclusive, private sector-driven, and re – silient growth while navi – gating challenges posed by unprecedented global events,” said WB VicePresident for Eastern and Southern Africa, Ms Vic toria Kwakwa. –
“We are committed to supporting Tanzania to deepen reforms that facilitate immediate recovery and strengthen the foundations for sustained, inclusive and resilient economic growth,” she added.
Recent assessments, including the just-released Country Economic Memorandum for Tanzania and the Country Performance and Institutional Assessment, show that several challenges hinder private sector growth.
The challenges include strict licensing requirements to start and run a business, limited access to credit and costly public sector debts (including Value Added Tax refunds).
The assessments also show the importance of complementing the public investment push with stronger social policies to promote inclusion and economic resilience.
The DPF aims to help address these challenges. The second phase of the DMDP will focus on climate-smart priority infrastructure, integrated solid waste management infrastructure and services and strengthening urban institutions.
“Tanzania remains very vulnerable to climate change and is limited in its preparedness to adapt and respond to the adverse impacts,” said Nathan Belete, WB Country Director for Tanzania.
“Building upon successful prior investments and outcomes achieved through the initial phase of the DMDP, this second phase aims to further fortify Dar es Salaam while improving mobility, livability esilience,” she added. The first phase of the DMDP improved mobility for 4.1 million people through the construction of 207.8 kilometres of roads, particularly in underserved low-income areas. It also enhanced flood protection for 406 hectares of urban land and upgraded 152 informal settlements, leading to improved living conditions for thousands of residents who now enjoy better access to basic services and amenities.
The WB International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programmes that boost economic growth, reduce poverty, and improve the lives of poor people.
IDA is one of the largest sources of assistance for the world’s 74 poorest countries, 39 of which are in Africa.
Resources from IDA bring positive change to the 1.3 billion people who live in IDA countries. Since 1960, IDA has provided 458 billion US dollars to 114 countries.
Annual commitments have averaged about 29 billion US dollars over the last three years (2019- 2021), with about 70 per cent going to Africa.
