Tanzanian, IFC explore strategies to accelerate private sector’s investment in agritech

BANGKOK: THE Minister for Finance, Ambassador Khamis Mussa Omar, has led a Tanzanian delegation in talks with International Finance Corporation (IFC) Vice President Ethiopis Tafara in Bangkok, Thailand, to discuss strategies for accelerating private sector development and expanding employment opportunities, particularly for young people.

The discussions focused on the implementation of Tanzania’s DIRA 2050 development vision, which aims to transform the country from its current 100bn US dollar economy into a 1tri US dollar economy in the next 25 years.

Ambassador Omar stressed that achieving this ambitious target would require greater private sector participation, particularly in manufacturing, infrastructure and agribusiness. He said investment in these sectors would accelerate economic growth and create sustainable employment opportunities for young people.

Tafara said the IFC, a member of the World Bank Group, would continue working with Tanzania to support the objectives of DIRA 2050 by facilitating private sector investment in agricultural technology (AgTech), healthcare, tourism and financial inclusion.

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He also expressed the IFC’s interest in contributing to the Tanzanian government’s plans to develop the Central Corridor, with the aim of stimulating economic activity across the region through the transportation of goods and passengers and supporting businesses along the route.

A significant part of the discussions focused on the financing gap facing small and medium-sized enterprises (SMEs). The IFC plans to work with financial technology (fintech) companies and non-bank lenders to expand access to credit by using behavioural data to assess borrowers’ creditworthiness, rather than relying solely on conventional collateral requirements.

Both sides reaffirmed their commitment to accelerating ongoing projects, particularly in the energy and digital infrastructure sectors, to speed up implementation and strengthen their contribution to Tanzania’s economic development.