Tanzania - Governance and Economic Competitiveness Support Programme – Supplementary Financing

The proposed operation is an additional Budget Support Loan to the United Republic of Tanzania, which supplements the Governance and Economic Competitiveness Support Programme (GECSP), approved by the Board in December, 2011. The additional budget support resources will make available to the Government of Tanzania a concessional loan and grant from the African Development Fund (ADF) window for a total amount not exceeding UA 38.41 million. The goal of the supplemental financing, which is aligned with the GECSP, is to support reform efforts aimed at improving Tanzania’s business enabling environment and enhance private sector development. It specifically targets interventions geared towards improving the performance of the energy sector which is critical to attaining accessible, reliable and affordable power in Tanzania. This will ultimately help improve access to and reduce the cost of energy thereby impacting positively on private sector development and the business environment. The stated goal is in line with component 3 or GECSP, focusing on Improving private sector development.