Tanzania and Japan Sign Exchange of Notes for JPY 6 bln Concessional Loan to Improve Business Environment and Job Creation in Tourism and Agribusiness

tanzania-japan

On March 30th 2016 Tanzania and Japan signed two exchange of notes under which the former will access technical assistance and a concessional loan from the Government of Japan for financing the “Business Environment for Jobs Development Policy Operation.” 

On March 30th 2016 Tanzania and Japan signed two exchange of notes under which the former will access technical assistance and a concessional loan from the Government of Japan for financing the “Business Environment for Jobs Development Policy Operation.”

Dr. Servacius B. Likwelile, Permanent Secretary to the Ministry Of Finance And Planning of Tanzania,  noted that this first exchange of note its related to a JOY 6 bln loan agreement that the government of Tanzania is going to sign later with the Japan International Cooperation Agency (JICA).

“The loan will support the implementation of the government programme for increasing job creation, reduce the overall cost of doing business, and create an enabling environment for selected labour-intensive industries”, Minister Likwelile added.

Specifically, the program will support making the regulatory environment for business registration, licensing, trade and taxation more business-friendly.

In addition it aims to improve  the functioning of factor markets such as labour, land and capital, and establishing an enabling environment for competitive and job-creating industries, particularly for agribusiness and tourism.

JICA’s on-going support for  Tanzania is primarily focused on economic growth toward poverty reduction, infrastructure development sustaining economic growth and poverty reduction, and improvement of public services to all citizens.

In April 2014 JICA granted the Tanzanian government USD 3.6 m to develop agricultural sector and increase agricultural productivity

In April 2015 JICA announced it would invest USD 200 m in 2015 in Tanzania that same year to support its agriculture and industry, and in turn to reduce poverty and create jobs.

Japan is one of Tanzania’s main donors, having contributed USD 338.43 m in 2013.

Only the USA (USD 734.11 m) and the World Bank (WB) (USD 706.83 m) contributed more in the same period according to the Organization for Economic Cooperation and Development (OECD).