Tanzania to Get World Bank USD 185 Million Loan

US$185 million dollars would be credited to Tanzania by the World Bank affiliate – the International Development Association (IDA), pursuing the goal of improving investment climate and supporting key sectors.

The already approved IDA credit of US$85 million would go as the Eleventh Poverty Reduction Support Credit (PRSC 11), and would support the government efforts in reducing poverty according to Tanzanian strategy MKUKUTA II and First Five Year Development Plan.

Due to the high importance of energy generating sector in Tanzania, another US$100 million is going against the Second Power and Gas Sector Development Policy Operation (DPA), and is targeting financial stability of the power sector.

The World Bank task team leader for the operations, Mr. Yutaka Yoshino, stated that these operations would help to create a better business climate to stimulate private investment, adding that benefits from growth would be shared more broadly across the country.

The World Bank and the International Development Agency have been working in collaboration with the Tanzanian government, and have facilitated implementation of numerous reforms including the recent Power sector reforms and expansion of natural gas in Tanzania.