Dar es Salaam. Tanzania’s ongoing macroeconomic reform programme has received a boost from the African Development Bank (AfDB) which approved $40 million as budget support loan.
The concessional loan, which is to be provided by the African Development Fund, is being managed under the bank’s Good Governance and Private Sector Development Programme (GGPSDP), AfDB said in a statement.
The first phase of the GGPSDP reinforces Tanzania’s Blueprint for Regulatory Reforms to Improve the Business Environment and forms part of the $80 million two-year programmatic budget support for the East African nation, covering the fiscal year 2017/18 and 2018/19.
“Tanzania’s economic reform programme 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,” commented Soraya Mellali, AfDB executive director for Algeria, Guinea and Madagascar.
The programme promotes the country’s transition towards inclusive and resilient private sector-led economic growth agenda, backed by improved economic and financial governance. The board of directors of the bank 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 an 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, AfDB stated.
It will also build on prior bank operations in the country, notably the Governance and Economic Competitiveness Support Programme, Power Sector Reforms and Governance Support Programme implemented during 2015-2017.
The programme complements the Bank’s Institutional Support Projects for Good Governance and the Domestic Resources Mobilization and Natural Resources Governance Project.
The funding is consistent with two of the bank’s high five priorities: “Industrialize Africa” and “Improve the quality of life of the people of Africa.”