Coronavirus: Tanzania economic recovery plans impress IMF

  
Embassy of the United Republic of Tanzania Tel Aviv, Israel

Embassy of the United Republic of Tanzania Tel Aviv, Israel


The government's efforts to fight COVID-19 and the economic recovery plans have impressed the International Monetary Fund (IMF), saying Tanzania deserved the recently approved loan from the fund. IMF Resident Representative, Jens Reinke made the remarks yesterday during a press conference organised by the Finance and Planning Minister, Dr. Mwigulu Nchemba on how the government will spend the 567,3 million US Dollars (about 1,3 tri/-) released by early this month.

Reinke said as part of the Covid-related rapid arrangements, borrowing countries have committed to undertake governance measures to promote accountable and transparent use of these resources. He said the government has shown commitment for economic recovery, following the COVID-19 pandemic seeing a bright future. Dr. Nchemba said the fund will effectively be spent to enable the country cushion the impact of the COVID-19 pandemic, following collapse of the tourism sector.

The Fund approval was 100 percent of the county quota under two facilities - Rapid Credit Facility (RCF) amounting 189,1 million US Dollar and Rapid Financing Instrument (RFI) covering the remaining 378,2 US million Dollar - to help finance the urgent balance of payment needs, stemming from the outbreak of the Coronavirus pandemic. The disbursement under the RCF and purchase under the RFI will help finance the interventions needed to mitigate the severe socio-economic impacts of the pandemic and help catalyze support from development partners.

The Minister said the loan will be spent in the 2021/2022 fiscal year in revamping mostly hit sectors of the national economy like Education, Tourism, Health, Water as well as supporting the poor households through the Tanzania Social Action Fund (TASAF). Others include empowering groups of youth, women and people with disabilities and some part of the money will be spent in Zanzibar for similar purpose.

The Minister mentioned some priority areas include reducing congestion in schools by improving education infrastructures, improving health services by increasing vaccine services and ensuring availability of drugs and equipment for COVID-19 treatment. The loan will also help put in place flowing water equipment at places with big groups of people. The Minister said the Ministry and IMF signed a special agreement on the best way to spend the money in a manner that will end deaths and spreading of COVID-19 among Tanzanians as well as social development.

Dr. Nchemba urged the sector that will benefit from the fund to ensure they are spent as per the agreement with IMF and in line with Tanzania COVID-19 Socio-Economic Recovery and Response Plan (TCRP). For his part, the Zanzibar's Minister of State-President's Office Finance and Planning, Jamal Kassim Ali thanked the IMF for extending the loan to Tanzania.

Distributed by APO Group on behalf of Embassy of the United Republic of Tanzania Tel Aviv, Israel.

Send us your press releases to pressrelease.zawya@refinitiv.com


© Press Release 2021

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.


More From Press Releases