ADB Group Helps Tanzania Fight Poverty
To this end, the Board of Directors of the African Development Fund (ADF), the concessional window of the Bank Group, on Wednesday in Tunis, approved a poverty reduction support loan of 50 million Units of Account (UA*), equivalent to 73.45 million US dollars for the country.
This budget support for fiscal year 2004/2005 will help the government implement its poverty reduction programme and achieve broad-based economic growth. The assistance will focus on agriculture, rural development, human capital and institutional development and structural reforms.
So far, the government’s economic reforms have resulted in a significant improvement in macro-economic performance resulting in its GDP growth averaging 5.3% over the past five years while inflation fell to a single digit. However, Tanzania remains one of the poorest countries in Sub-Sahara Africa with about 36% of the population living below the poverty line.
The ADF loan will focus on policy actions in the promotion of an enabling environment for private sector development, the development of micro finance and the strengthening of public financial management.
The total cost of the programme is estimated at 317.60 million UA, equivalent to 466.55 million US dollars. The ADF, the World Bank, and 11 bilateral donors are co-financing the programme.
The Bank Group has provided five policy-based loans to Tanzania amounting to UA 168.81 million, equivalent to 247.98 million US dollars.
The operations of the Bank Group in Tanzania commenced in 1971. To date, the cumulative amount committed by the Bank in the country amounts to 1.23 billion US dollars to finance 71 operations.
- Name of Programme: Poverty Reduction Support Loan (PRSL)
- Location: Countrywide
- Duration: 6 years
- Executing Agency: Ministry of Finance
- Date of Effectiveness and Duration: November 2004 for 12 months
* 1 UA = 1.46899 USD = 1582.31 TZS as at 01/10/2004
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