AfDB Lend Tanzania USD 40 Million to Support Private Sector Development

AfDB Tanzania loan private sector development

The African Development Bank (AfDB) has announced a USD 40 million budget support loan to Tanzania, to promote the country’s transition towards inclusive and resilient private sector-led economic growth agenda, backed by improved economic and financial governance.

The budget support facility is being managed through the African Development Fund (ADF), under the Bank’s Good Governance and Private Sector Development Program (GGPSDP).

The first phase of the GGPSDP reinforces Tanzania’s Blueprint for Regulatory Reforms to Improve the Business Environment and forms part of the USD 80 million two-year programmatic budget support for Tanzania, covering the fiscal year 2017/18 and 2018/19.

In approving this budget support loan, the Board of Directors of AfDB appraised Tanzania’s economic management and considered ongoing efforts to achieve public sector budget credibility, macroeconomic stability, a conducive climate for private sector development and effective procurement systems and audit services.

The Bank’s intervention will enhance the viability of Private, Public-Sector Partnerships (PPPs) and support improvements in the institutional, legal and regulatory framework for business operations in Tanzania.

It will also build on prior Bank operations in the country, notably the Governance and Economic Competitiveness Support Program, Power Sector Reforms and Governance Support Program implemented during 2015-2017.

The program complements the Bank’s Institutional Support Projects for Good Governance and the Domestic Resources Mobilization and Natural Resources Governance Project.

Commenting on Tanzania’s ongoing economic reforms, Soraya Mellali, Executive Director for Algeria, Guinea, and Madagascar at the Bank said that “Tanzania’s economic reform program is on course and the country is committed to strengthening competitiveness and development of the private sector. The budget support loan would further aid this process.”

RELATED:  AfDB Invite Bidders For Tanzania-Kenya High-Voltage Power Line

AfDB in Tanzania
Tanzania is the second largest beneficiary of ADF, the concessionary funding window of AfDB.

Over the past 5 years, the focus of AfDB in Tanzania has been mostly on infrastructure development and governance.