A Quick Peek at the World Bank Tanzania Relationship on the Country Economic Development
The World Bank Group (WBG) provides grants, loans and policy analysis to support economic development in Tanzania with a focus on infrastructure and private sector growth. Starting in 2018,
World Bank Group supports 25 live projects with funding of more than $ 3.95 Billion. World Bank Group assists in analytical and technical matters in the coordination of these World Bank projects in Tanzania. From 2007-2018 Tanzania maintained real GDP growth at an average of 6.8% per annum. Growth is focused on the agricultural and transportation sectors. To put more emphasis on this growth, the poverty rate in Tanzania decreased from 28.2% in 2012 to 26.9% in 2016. The debate is on the legitimacy of this growth as development can be dispersed unequally between different geographical and income groups.
World Bank Tanzania Economic Update Strategy
The World Bank’s 2017 Systematic Country Diagnostic Report identified many development constraints. These challenges include poor personal income growth, access to quality services, widespread gender inequality, declining water supply and poor management of natural resources.
The Tanzania World Bank data report identifies climate change that could lead to changes in rainfall patterns and rising sea levels and particularly affect energy and agricultural activities. The World Bank Tanzania Partnership Framework in 2018-2022 focused on three areas of improvement;
• structural changes to benefit Tanzania’s natural resources and use its benefits to create new jobs;
• spatial transformation to build in more geographical areas in the country and increase profits from spatial integration and agglomeration;
• improve public infrastructure by increasing manpower, gender equality and stabilizing the economy.
World Bank Tanzania Strategic Cooperation
International Development Association
The International Development Association (IDA) provides concessional loans and grants to developing countries. IDA funds 24 projects in key sectors of the Tanzanian economy including transport (28%), social development (22%), energy (9%), education (8%), social security (9%), water clean and safe (5%). IDA provides approximately $ 393 million for Tanzania’s participation in five regional projects. In 2017, IDA provided a $ 225 million as a Tanzania World Bank loan for the development of highways in Dar es Salaam to alleviate transportation challenges and support local
businesses. The IDA supports projects that benefit government processes. In 2006, IDA assisted in the development of a state-of-the-art Tax Project with the aim of improving tax infrastructure in the country and providing an education program for tax regulators and taxpayers.
International Finance Corporation
The International Finance Corporation (IFC) provides investment, advisory and asset management services to developing countries. IFC supports infrastructure projects in the energy, oil, and communications sectors. In 2016, IFC released a web port to improve the level at which a small grid is built to support small renewable energy producers. IFC aims to promote emerging financial markets by increasing access to finance for small and medium-sized businesses. In 2013, IFC provided a $ 3 million loan to FINCA Tanzania, a small financial institution, to expand small financial services targeting women, youth and rural residents.
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