By Alfred Zacharia
World Bank Approves Transformative $400M Country
Partnership Framework for Tanzania
Dar es Salaam— In a significant move to accelerate Tanzania's journey toward becoming
a lower-middle-income nation, the World Bank Group’s Board of Executive
Directors has approved a comprehensive new Country Partnership Framework (CPF)
for Tanzania, spanning fiscal years 2025 to 2029. This ambitious initiative aims
to enhance human development, support global poverty eradication efforts, and
drive economic growth through a coordinated approach leveraging the strengths
of the International Development Association (IDA), the International Finance
Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).
Advancing Human
Development
Central to the CPF’s strategy is a
robust agenda focused on transformative interventions in education, healthcare,
water, sanitation, and hygiene (WASH), alongside shock-responsive social
protection programs. These initiatives are designed to complement and build
upon the Tanzanian government’s ongoing efforts to uplift the nation’s human
development indicators. The framework aims to create significant improvements
in these critical sectors, which are foundational to the country's
socio-economic progress.
Enabling Private
Sector-Led Growth
The CPF also prioritizes creating an
enabling environment for private sector-led growth by reinforcing reforms to
enhance the business climate, investing in essential infrastructure, and
modernizing productive sectors. By leveraging Tanzania’s strategic geographic
position, the framework seeks to foster inclusive growth within the country and
across the sub-region. This approach aligns with the IFC’s Creating Markets
Strategy, which focuses on fostering conditions for inclusive development.
Climate Resilience
and Economic Stability
Climate resilience and economic
stability are pivotal components of the CPF. According to Nathan Belete, World
Bank Country Director, the framework emphasizes climate change adaptation and
mitigation strategies, alongside measures to strengthen overall economic
resilience. “Empowering women and youth and enhancing government effectiveness
through transparent and accountable institutions are cross-cutting themes of
the CPF,” Belete stated, highlighting the framework's alignment with Tanzania’s
Third Five-Year Development Plan and Zanzibar’s Five-Year Development Plan.
Private Sector
Participation
Mary Porter Peschka, IFC’s Regional
Director for Eastern Africa, emphasized the crucial role of private sector
participation in driving economic growth and job creation. “IFC is committed to
supporting inclusive finance, agribusiness, manufacturing, and sustainable
infrastructure in Tanzania,” Peschka noted. The CPF’s emphasis on private
sector-led growth is expected to catalyze significant investments and foster an
environment conducive to economic development.
Investment and
Financial Inclusion
Șebnem Erol Madan, Director of
Economics and Sustainability at MIGA, highlighted the increased investor
interest in Tanzania, spurred by recent government reforms. MIGA will continue
to promote financial inclusion and climate finance, leveraging the World Bank
Group’s guarantee platform to mobilize private capital in key sectors such as
renewable energy and digital technology. “The CPF builds on the success of the
previous 2018-2022 framework, which facilitated significant improvements in
water access, secondary education, and electricity provision across Tanzania,”
Madan added.
Track Record of
Success
The previous CPF framework saw notable
achievements, including improved school attendance, expanded vocational
education, and increased rural electrification. These successes provide a
strong foundation for the new framework's initiatives. IFC’s current investment
portfolio in Tanzania exceeds $400 million, focusing on financial institutions,
agribusiness, and real estate, with additional advisory support. MIGA’s recent
guarantees in the mobile money and banking sectors underscore its expanding
role in Tanzania’s development, with a robust pipeline in renewable energy and
digital sectors.
The new CPF represents a bold step
forward in Tanzania’s development journey, with a comprehensive strategy
designed to foster inclusive growth, enhance human development, and drive
economic resilience. As Tanzania continues to implement reforms and attract
investments, the collaborative efforts of the World Bank Group aim to ensure
sustained progress and prosperity for the nation and its people.