Tanzania-AfDB Provides Assistance to Support Poverty Reduction
Tunis, 28 June 2006 – The Board of Directors of the African Development Fund, the concessional window of the African Development Bank (AfDB) Group, today approved a highly concessional loan of 50 million Units of Account (US$ 75 million or 88.2 billion Tanzanian Shillings) to the Government of Tanzania to support it’s efforts to reduce poverty and improve social indicators in the country.
The loan will assist the government in implementing its policy objectives as indicated in the Tanzania’s National Strategy for Growth and Reduction of Poverty (MKUKUTA) and contribute to attaining the Millennium Development Goals (MDGs) by providing financing for the 2006/2007 budget.
The loan will also facilitate dialogue on policy matters and the implementation of the government’s priorities, arrived at following broad consultations with the civil society.
In the medium term, the Government seeks to continue with the reform efforts to improve macroeconomic management and to undertake structural reforms aimed at improving private sector development, rural development, public service, public financial management, poverty monitoring, and environmental management.
In the past five years, Tanzania’s economic reform efforts have gathered momentum and there is a more determined and coherent approach to the daunting task of poverty reduction. The Government has demonstrated a strong commitment to the reform, and there is now a greater sense of ownership of the reform process which has greatly increased donor confidence in the country. The loan is provided within the context of a framework grouping fourteen donors (PRBS Group).
The ADB Group operations in Tanzania started in 1971. To date, its commitments in the country stand at TZS 1,500 billion in 96 operations.
- Sources of financing: ADF, IDA, DfID, EU, The Netherlands, Sweden, Norway, Canada, Denmark, Ireland, Switzerland, KfW, Japan, Finland
- Estimated start-up date and duration: September 2006, for 18 months
* 1 UA = USD 1.49418 = TZS 1,763.34 as at 01/06/2006