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The World Bank has pledged nearly $300 million (about Sh786 billion) to support the third phase of the Tanzania Social Action Fund (TASAF), marking a significant step in the country’s efforts to combat poverty.
The announcement, made on Thursday, December 5, in Dar es Salaam, follows the successful implementation of the second phase, which will conclude next year.
Speaking during a high-level meeting with government officials and development partners, Nathan Belete, the World Bank’s Country Director for Tanzania, commended TASAF for its transformative impact.
“TASAF is a global model for poverty alleviation. It demonstrates how targeted programs can uplift vulnerable populations and provide lessons for other nations,” he said.
Mr. Belete emphasized the World Bank’s continued commitment to partnering with Tanzania to empower its citizens and improve livelihoods.
The Minister for Finance, Dr. Mwigulu Nchemba, described the third phase as a pivotal moment in Tanzania’s journey toward inclusive development.
“This phase will ensure no one is left behind,” he said. “We are committed to integrating all groups into the nation’s development agenda, with a focus on equitable allocation of resources to support productive activities for low-income households.”
Dr. Nchemba highlighted the accomplishments of the previous phases, noting that many beneficiaries had successfully increased their incomes and improved their standards of living. He pointed to specific examples where TASAF funding enabled families to start businesses, send children to school, and access essential services.
“These stories of success are proof of the program’s effectiveness and the transformative power of targeted interventions,” he added.
The Minister also provided an optimistic economic outlook for Tanzania, projecting a growth rate of 5.4% in 2024, up from 5.1% in 2023. “This improvement reflects our government’s dedication to addressing challenges and implementing policies that foster economic resilience and growth,” he said.
Dr. Saada Mkuya Salim, Zanzibar’s Minister of Finance and Planning, stressed the importance of modernizing TASAF through digital solutions.
“Integrating digital payment systems will ensure funds are disbursed securely and efficiently, while promoting savings and financial inclusion among beneficiaries,” she said.
Dr. Salim noted that Zanzibar has greatly benefited from TASAF, with initiatives such as building schools and health centers significantly improving the lives of low-income families.
Shedrack Mziray, the Executive Director of TASAF, revealed that the third phase would cost approximately $500 million (Sh1.3 trillion) and aim to assist both new and existing beneficiaries.
“This phase will prioritize vulnerable groups, including widows, the elderly, and others still experiencing severe poverty,” he explained.
The dialogue, which brought together leaders from Tanzania Mainland and Zanzibar, as well as development partners, focused on ensuring TASAF continues to make a tangible difference in people’s lives.
Minister Ridhiwan Kikwete, from the Office of the Prime Minister, highlighted the importance of these discussions.
“As the second phase nears completion, it is crucial to map the way forward for a new program that aligns with the evolving needs of our society,” he said.
The third phase of TASAF is expected to drive greater inclusivity and empowerment, aligning with Tanzania’s long-term Vision 2025–2050.
The collaboration between the government and international partners, including the World Bank, underscores a shared commitment to creating a brighter and more equitable future for all Tanzanians.
“This partnership is about more than just funding it is about transforming lives and ensuring that the most vulnerable among us have the opportunity to thrive,” Dr. Nchemba said.