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. The project contributes to climate finance, with 32 million USD of the total approved amount dedicated to adaptation.