Tanzania - Economic Competitiveness and Social Inclusion Programme (ECSIP) - Phase I

The proposed operation is an ADB loan to the United Republic of Tanzania of US$107.8 million to finance the Economic Competitiveness and Social Inclusion Programme (ECSIP). ECSIP aims to support Tanzania’s post-COVID-19 economic recovery, which is threatened by spillovers from the impacts of Russia’s invasion of Ukraine on energy and food prices. It is the first in a 2-year programmatic series, for the fiscal years 2022/23 and 2023/24. The proposed ECSIP deepens reforms that were introduced through Tanzania’s COVID-19 Crisis Response Budget Support Program (2020-2021), and previous Bank financed Good Governance and Private Sector Development Programme Phases I and II (2018-2020). The programme is organised under three components which are complementary and mutually reinforcing: (i) Attaining Fiscal Sustainability; (ii) Private Sector Competitiveness and Climate smart Industrial Development Strengthened; (iii) Enhancing Socio-economic Inclusion. Eventually, the reforms envisaged under this operation will lead to a more efficient and sustainable use of fiscal resources and will create a more conducive climate for entrepreneurs to operate job creating, and value-adding enterprises. This operation builds on the Bank’s vast experience in supporting budget support operations in Tanzania in the areas of private sector development, and broader issues of economic competitiveness.