ADF, Tanzania sign Poverty Reduction Support Loan
The African Development Bank Group Vice President for North, East and South Operations, Mr. Theodore Nkodo, and the Ambassador for Tanzania in Egypt , Mr. Kassim Mwawando, signed, in Tunis on Thursday, December 9, the loan agreement of the Poverty Reduction Support Project amounting to US$ 76.8 million (50 million Units of Account). The project was approved by the ADF Board of Directors on October 27, 2004.
Recalling the Bank’s funded projects in various sectors such as agriculture, transport or social sectors, VP Nkodo emphasized the fact that this loan is the first budget support operation that the Bank is extending to Tanzania. The objective of this new operation is to support the government’s development efforts in attainment of the goals set out in the Poverty Reduction Strategy.
M. Nkodo commended the progress that Tanzania has made in the implementation of its economic and social reforms programme, which is anchored on the poverty reduction strategy of the country. As a result, macroeconomic performance has improved significantly. Ambassador Mwawando underlined Tanzania’s economic achievement saying: "Tanzania has in the recent past achieved considerable success in economic reforms. Economic growth has averaged more than 5% while inflation declined significantly"
The implementation of the Bank’s budgetary support programme as well as potential contributions from the International donor community expected by Tanzania would improve the economic and social well being of the people in the country.
The Bank’s Group operations in Tanzania started in 1971. With this new agreement, the group would have committed a total of US$ 1.3 billion (UA 868 million) in 75 operations in the country.