The government of Tanzania has signed a 440bn/- loan agreement with the World Bank (WB) through its International Development Association (IDA) for the Tanzania Productive Social Safety Net (PSSN) project which falls under the Tanzania Social Action Fund (TASAF).
Speaking at the signing ceremony, the Permanent Secretary in the Ministry of Finance and Planning and the Paymaster General, Dr Servacius Likwelile, said that the programme aims at creating a comprehensive, efficient, well-targeted PSSN for the poor and vulnerable citizens in the country.
“The funds will help in the implementation of the TASAF cash transfer programme which is designed to improve access to food for eligible and duly registered households. The initiative is also tailored to create incentives for investment in the education and health of children in poor communities,” said Dr Likwelile.
Along with the signing, the two parties have approved 10 projects worth 1.9trl/- in sectors that include energy, roads, agriculture, health, education and water supply.
He added that the funds would also assist TASAF in carrying out a programme involving activities designed to strengthen implementation of its initiatives. “I wish to thank the World Bank team for the dedication and hard work carried out in the preparation of this project and others involved in the process to make it possible for the signing,” he noted.
According to the PS, the government is committed to ensuring that the development objective of the project is attained. This will greatly contribute to the goal of reducing extreme poverty through consolidation of the social safety net system by reaching all the poor households in the country.
The World Bank has also selected Tanzania to be among the few member countries of IDA who are eligible to benefit from IDA 17 Scale-up Facility due to the country’s good track record in macroeconomic performance.
It is this performance that has enabled the GDP to continue to grow at an average of seven per cent over the past ten years. “Through the facility the government has committed 440m/- to support the Rural Electrification Expansion project under the Rural Electrification Agency (REA),” the PS pointed out.
For the first time the WB has allowed the government to access financial resources from the International Bank for Reconstruction and Development (IBRD), a commercial window.
Following such move, the government is in discussions with the World Bank to finalize the preparations of the negotiation for a credit worth 1,320bn/- to support the development and modernization of Dar es Salaam Port.
On her part, the Country Director of the World Bank (WB), Ms Bella Bird, pointed out that the bank was delighted with the programme’s implementation — the reasons to why they are injecting additional funds.
“The TASAF programme has reached 1.1 million people which is equivalent to 15 per cent of poor households in the country. This programme is such a moving project especially when you visit the beneficiaries in their communities,” Ms Bird noted.
