World Bank grants $60.2 million to Tanzania for business development
World Bank has provided $60.2 millionto improve land administration and access to financial services in Tanzania (Image: Atlanta Black Star)
Tanzania will benefit from the support of the World Bank (WB) to build up its business infrastructure, with focus on land administration improvement and enhanced access to financial services.
The World Bank International Development Association (IDA) has provided $60.2 million additional financing to the Southeast African economy for its Private Sector Competitiveness Project (PSCP).
The objective of the WB funding is to prompt economic growth and develop shared prosperity for the country’s population, mainly the vulnerable.
World Bank Country Director for Tanzania, Philippe Dongier, stated that economic liberalization, sound macroeconomic policies and an expanding public sector have enabled Tanzania to experience high rates of economic growth during the past decade.
Private investment in industries, light manufacturing firms and farms as well as furthering shared growth and jobs and improving the quality of life for Tanzanians can be boosted with the help of the PSCP which focuses on securing land ownership and improving access to finance.
The role of the PSCP is to support activities intended to improve land registration, land use planning and regularization of possession rights.
The land demarcation and registration approach to replace the traditional high cost registration on demand – which is about 10 times more expensive– have already started.
The aim of this project is to promote advance land administration reform, complete business registration reform, and help to implement the recent government initiative to speed up delivery of priority programs such as agriculture, education, energy, transport and water.
The PSCP activities helped74,000 borrowers and 92,000 clients to participate in microfinance, and an additional 35,000 people to participate in Village Savings and Loan Associations and Village Community Banks.
World Bank Task Team Leader, Moses Kibirige, said that Tanzania’s private sector will continue to be supported by the scaling-up of the PSCP.
World Bank Co-Task Team Leader, Valeriya Goffe additionally expressed the hope thatwith the project, young people, women, and poor households in Tanzania would benefit from new opportunities.
Established in 1960, the World Bank’s International Development Association (IDA) helps the poorest countries of the world by giving them the advantage of zero-interest loans. It contributes to project and programs which improve economic growth, reduce the level of poverty, and improve the life of poor people.
The IDA, one of the largest sources of assistance for the world’s 82 poorest countries – of which 40 are from Africa –has already helped 108 countries in development work. Over the last three years, annual commitments have averaged about $16 billion with about 50 per cent of the commitments going to Africa.