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World Bank credit set to improve economy
2007-05-30 08:34:10
By Michael Haonga,
The World Bank recently approved a credit facility to Tanzania amounting to 190mUSD.The Bank has specified that the `Fifth Poverty Reduction Support Credit (PRSC-5) for 190mUSD to the United Republic of Tanzania is in support for the implementation of the National Strategy for Growth and Reduction of Poverty.
The credit provides support for the three clusters of the MKUKUTA that is growth of the economy and reduction of poverty, improvement of quality of life and social wellbeing, and governance and accountability.
`This credit will provide incentives to implement key economic, social and institutional reforms to strengthen the overall performance of the economy and contribute to poverty reduction in Tanzania,` underlines Robert Utz, the Task Team Leader and Senior Economist in the World Bank, Africa region.
The credit is expected to help the government sustain growth around 6 to8 percent annually which is projected to result in significant reduction of poverty.
It will also help the government in making progress towards achieving the Millennium Development Goals, namely increase school enrolment and literacy rates, reduce child and maternal mortality, increase access to safe water, and strengthen the sustainability of development efforts.
`As Tanzania remains vulnerable to external shocks as droughts, changes in commodity prices, or fluctuation in aid flows, the credit encourages the diversification of the economy and institutional reforms that will reduce this vulnerability,` says Judy O\'Connor, the Country Director for Tanzania and Uganda.
The support will also include measures to strengthen Tanzania`s power sector, where in 2006 drought related power shortages highlighted significant structural weaknesses related to the management of the sector, the financial soundness of the Tanzania Electric Supply Company.
Also included is structure and technical efficiency of Tanzania`s power generation, distribution, and transmission systems.
PRSC-5 funding is provided within the context of the General Budget Support program, which is supported by a group of 14 development partners.
A joint review of progress in implementing programs and reforms supported by the program was carried out in October 2006.
The report concluded that overall results are generally satisfactory, but also encouraged a strengthening of reform efforts in several areas.
These include the infrastructure sector, especially energy and transport, legal sector reform, and the fight against corruption.
It is noted that analysis of Tanzania\'s recent growth performance highlights the importance of reforms of the institutional and policy environment.
This is to enable the infrastructure sector, which will provide the basis for scaling up of urgently needed investments in the sector to remove bottlenecks to economic growth.
The Executive Board of the World Bank group has also approved a credit for US$42 million in support of education improvement project for Zanzibar.
The amount is part of the US$48.5 million needed by the Government of Zanzibar to achieve the objectives of its education sector in the next six years beginning 2007. The Government will contribute 6.5 mUsd towards the implementation of the project.
The objectives of the program have been revealed as aiming at facilitating completion on lower secondary education including achieving better examination results.
This will be facilitated through construction of secondary schools, laboratories and facilities for teacher training, by providing in-service mathematics and science training to teachers, and making text books in core subjects available to all primary secondary schools in Zanzibar.
Involvement in the Zanzibar Basic Education Improvement Project follows a request by Tanzania\'s Ministry of Finance for the World Bank to assist the Government of Zanzibar to determine approaches and best practices in secondary education.
According to 2003 statistics, enrolment rate in Zanzibar at primary school stood at 90percent, with Net Enrollment rate of 80percent.
Enrolment at secondary school is about 30percent.
Statistics further indicate that participation in primary school has been growing at all levels in recent years, with enrolment rising from 163,000 in 1997 to 276,000 in 2005.
Progress has also been registered in the secondary school sub sector.
For example, in 2006, 72,293 students were enrolled in secondary education compared to 26,293 in 1996.
The Tertiary sub sector is also growing in Zanzibar. As of 2006, 1,628 students were enrolled in the three local universities in Zanzibar.
`Access remains an area of concern at secondary and tertiary education leavels where Gross Enrollment ratio (GER) is estimated at 40 percent at Ordinary Level, 6percent at advanced secondary level and only 1percent at tertiary levels,` reveals Ivar Strand, Task Team Leader for the Zanzibar Basic Education Improvement Project.
According to Strand, the Zanzibar education spending is expected to reach 22 percent of the government`s budget in the next five years from the current 19percent.
`To achieve this target, several investments require financial support for new classrooms, teachers\' training and text books and laboratories, materials and library books, and increase the teachers wage bill,` adds Strand.
`The credit has come at an opportune time given the urgent need of improvement of the education sector in Zanzibar,` says Judy O\'Connon, Country Director for Tanzania and Uganda.
`It is the hope of the Bank that the credit will be used for intended purpose of improving the standard and quality of education for economic growth and empowerment of the people of Zanzibar.
We all pray that the support will not only be used for the intended purpose but also rejuvenate efforts and support of other Development Partners to lend a hand so that the World does away with pockets of poverty ridden countries when we are boasting of the world becoming increasing a global village.
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