The African Development Bank (AfDB) will support Tanzania’s 2016–2017 budget with USD200m.
The announcement was made by Alberic Kacou, Vice-President Human Resources and Corporate Services of AfDB, during his visit to Tanzania on July 19th 2016.
He explained that AfDB wants to invest in Tanzania’s energy, food production and industrialization in order to improve people’s welfare.
Kacou added that Tanzania is AfDB’s largest African funds recipient thanks to its national development programs that are in line with the bank’s requirements.
During the visit, Tanzania’s Minister of Finance, Philip Mpango, stressed that the government is committed to implementing its development plans.
These include improvement of air, rail and marine transport in Tanzania, which will be achieved through the procurement of 3 passenger aircrafts, upgrade of Tanzania’s central rail line to standard gauge, and purchase of a new ship for Lake Victoria.
Tonia Kandiero, Resident Representative in Tanzania of AfDB, commented that the bank’s support to the country’s budget rose by USD50m this year, reaching USD200m, compared to the 2015–2016 budget support of USD150m.
As of 30th November 2015, the AfDB’s portfolio in Tanzania consists of 29 projects with total net commitment of USD 1.97bn, nearly half of which is allocated to transport infrastructure.
AfDB Tanzania Country Strategy Paper (CSP) 2011–2016
AfDB introduced the CSP for Tanzania to assess the country‘s development challenges and prospects, and guide AfDB‘s support to the priorities expressed in Tanzania’s development strategy.
Part of the bank’s achievements during the CSP 2011–15 period include the upgrading of more than 777 km of road to bitumen standard and rehabilitation of more than 31,000 water points serving about 8.8m people in rural areas; construction and rehabilitation of more than 50 market facilities; and the training of hundreds of microfinance borrowers, health workers, farmers’ facilitators and 11,000 farmer groups.
AfDB Tanzania CSP 2016–2020
The recently approved AfDB Country Strategy 2016-10 for Tanzania, indicate that despite the country sustained economic growth, it is still struggling in translating this into economic transformation, faster poverty reduction and improvement in the livelihoods of its population.
In line with the AfDB’s 2016–2020 CSP for Tanzania, the Bank will focus on supporting the transport and energy sector in the country during the next five years by improving the domestic and regional transport network and to provide access to affordable electricity.
The AfDB’s 2016–2020 approved assistance package for Tanzania exceeds USD 1.1bn. Additional resources will be provided from the Africa Growing Together Fund (AGTF), trust funds, renewable energy financing and co-financing with other partners.