AfDB’s $55mn facility to strengthen Tanzania’s economic competitiveness

The African Development Bank has approved a USD 55 million facility to strengthen implementation of reforms to boost Tanzania's economic competitiveness and private sector participation in the country's growth.

These reforms will lead to a more effervescent economy that would improve the living conditions of the people living in Tanzania, mainly the poor and vulnerable, including women and youth. "Tanzania's private sector is dominated by small enterprises mostly in smallholder agriculture and small informal non-farm businesses. By strengthening the regulatory framework, the country's private sector will have the required incentives to fully participate in the economy, particularly in cross sector growth-enhancing and transformational investment opportunities," Abdoulaye Coulibaly, the Bank's Director of Governance and Public Financial Management Department said.

The support from the (African Development) Bank's African Development Fund will strengthen ongoing reforms being undertaken by the Tanzanian government that have been identified as critical for the participation of local and foreign investors across different sectors of the economy.

The country's main development challenge has been to make economic growth more inclusive and broad-based – to create employment and equal opportunities across age, geography and gender. On the other hand, the bank's support will finance the second phase on the Good Governance and Private Sector Development Program that would assist close the 2019-20 financing gap and make key government agencies more effective.

The reform program aligns with Tanzania's Vision 2025 and its second five-year development plan (2016-17 – 2020-21). It is also consistent with pillar II of the Tanzania Country Strategy Paper (2016-2020) – Strengthening Governance and Accountability, as well as two African Development Bank High5 Priorities: Industrialize Africa and Improve the quality of life of the people of Africa.