Massive WB boost for Tanzania

THE government has received 280 million US dollars (over 560 billion shillings) from the World Bank and Japan for the implementation of several development projects.

According to the Permanent Secretary in the Ministry of Finance, Dr Servacius Likwelile, about 460 billion shillings (230 million dollars) has been issued by the bank while the remaining amount was issued by the Japanese International Cooperation Agency, JICA.

From this amount, 100 million dollars will be used to advocate transparency; 80 million dollars will be used to create conducive business atmosphere while 50 million dollars will be used to improve the social insurance sector.

This was revealed in Lima, Peru, during a meeting with Tanzanian delegation led by Dr Likwelile and the Vice-President of World Bank Africa, Makhtar Diop and JICA Vice-President Hiroshi Kuto. During the meeting, JICA confirmed its continued support towards Tanzania in its development effort.

Mr Kuto said during the meeting that the government of Japan has plans to support Tanzania and Kenya in improving the roads infrastructure, which will connect Arusha and Mombasa and hence boost business activities and tourism between the two countries.

During the dialogue, Japan expressed its readiness to support Tanzania in its national budget preparation, a process in which they have been participating for a number of years now.

Elaborating on the social insurance fund, Dr Likwelile said improving the pension fund has currently been put on hold and they have requested the International Labour Organization (ILO) to go through the sector to define issues which can be put into top consideration while improving the fund.

In discussions with WB officials, Dr Likwelile highlighted to them challenges faced by the government, which are caused by unreliable power supply that has been brought about by shrinking water levels at power plants.

“We depend on gas from Kinyerezi One, which produces 405 to 407 megawatts, and we also get electricity through the use of petrol and diesel, which is very costly. We still have a shortage of 160 megawatts, and this has had a negative impact on our national budget,” he said.

Mr Likwelile said that the WB will collaborate with the UK Department for International Development (DFID) and Japan to invest on the central railway system to improve its services.

Saying the economy of the country is experiencing a 6.5 per cent growth, he said the foreign exchange reserve enables Tanzania to order goods that can last for four months. In his meeting with the WB vice-president, Dr Likwelile insisted that Tanzania is still determined to involve itself in business agriculture.

He urged the WB to invest in infrastructure, which will boost the economy, especially on energy, railway, roads, communication and investing on the youth who need to be assured of employment opportunities. He said that because of the structure of the Tanzanian economy, there is no need to increase tax to the current level.

OP Daily News