|
WB to fund Tanzania projects
19/06/2006 20:41 - (SA)
London - The World Bank has approved credits of $215m to support Tanzanian developments in agriculture, local government, and the revenue and financial sectors.
"A credit of $90m is aimed at giving farmers better access to agricultural technologies, marketing systems and infrastructure and the promoting of private investment in agriculture," said the bank's programme leader Robert Townsend on Monday.
He said an agricultural sector development programme would be an important contribution to overall growth and poverty reduction objectives "through raised agricultural productivity and farm incomes."
The bank's director for Uganda and Tanzania, Judy O'Connor, said more emphasis should be on getting "timely and high quality advice to Tanzanian farmers, giving them access to research and supporting stronger links between products and markets."
O'Connor said a further $98m credit will be used to strengthen local government through ongoing fiscal decentralisation, improved accountability in the use of local government resources, and improved management of intergovernmental transfers.
"The programme also seeks to improve access to infrastructure and services in unplanned and under-served areas of Dar es Salaam, and improve revenue collection to sustain operations," she said.
In order to improve the workings of the Tanzanian tax department, O'Connor said the World Bank has granted $12m credit to the country.
"A tax modernisation project is a key programme in support of the national strategy for growth and reduction of poverty. It will improve revenue performance and increase domestic resources on a sustainable basis to finance public investments," O'Connor said.
She said the bank will support the further development of Tanzania's financial sector during 2006/07, "through a project to strengthen the banking sector, develop financial markets, reform the pension sector, strengthen the insurance industry, facilitate the provision of long term development finance and strengthen micro and rural finance."
"A $15m credit will be the initial funding for a $22m financial sector support project which will follow the second financial institutions development project (FIDP) to increase the soundness and competitiveness of the financial sector," O'Connor said.
"FSP is a five-year project. The balance of funding will come from a grant of $5m from the UK government and $2m from the Tanzanian government."
O'Connor said the strengthening and deepening of the financial sector was important for supporting "the continued economic growth and macro economic management of the large and increased inflows" into Tanzania.
|
News
