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Tanzania’s anti-poverty strategy lands $410 bn
2006-03-04 10:10:26
By Mgeta Mganga
African Development Bank (AfDB) has allocated $410 million to Tanzania’s National Strategy for Growth and Reduction of Poverty (NRSGP) or Mkukuta, as it is commonly known.
Gerald Zirimwabugabo, the excutive director of the bank, said the country is eligible for the multilateral debt relief after the Group of Eight (G8) industrialised countries agreed last year to forgive highly indebted poor countries, Tanzania being one of them, debts accrued in the first two decades of independence.
The AfDB boss said the bank is currently calculating the exact mount of money that will be waived from the country’s foreign debts.
The delegation said it appreciated that the government faces a serious challenge of feeding a population 3.5 million people following a severe drought that has ravaged crops in most parts of the country.
Permanent Secretary in the Ministry of Finance Gray Mgonja said that the bank finances a total of 13 projects in the country.
Mgonja said that 25 per cent of the amount is used to support the agricultural sector, while 23 per cent is invested in the transport sector and the remaining amount supports the development of social amenities like hospitals and education.
Minister for Finance Zakia Meghi said AfDB was impressed with the current levels of economic growth and performance.
She said that high economic performance recorded by the country over the past decade had built confidence in its development-partners, hence the debt waiver.
In addition, she said, Tanzania had put in place strong macroeconomic policies that guaranteed sustained high growth rates, despite global economic shocks caused by high oil prices, wars and trade protectionism.
Tanzania has been on the forefront in the fight against corruption and strengthening of good governance since 1995.
Six top officials of the bank arrived in the country yesterday to hold consultative talks with the government on a wide range of issues.
During their four-day stay, they are scheduled to meet ministers and senior government officials to discuss issues pertaining to AfDB credit to the country, especially its priority areas.
AfBD is made up of 57 African states with a capital base that currently stands at US$33 billion.
The bank is a multilateral lender with a mandate to contribute to the economic and social progress of its member-countries.
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