Tanzania - Structural Adjustment Loan II (SAL II)

The Structural Adjustment Loan II (SAL II) will be to support the implementation of Tanzania's economic reform program covering the 2000-2003 period, which is an integral part of the PRSP. The Government's reform program comprises two broad components. The first involves actions aimed at strengthening growth by consolidating macroeconomic stability; improving rural infrastructure; creating an enabling business environment; promoting and diversifying exports; and improving agricultural productivity. The second component encompasses actions aimed at improving human capabilities, survival, and well being by increasing budgetary support to key poverty reduction programs, improving governance, reducing the vulnerability of the poor; protecting the environment, and strengthening the poverty monitoring and evaluation process. The proposed ADF SAL II will build on the progress achieved under the World Bank's SAC I and the ADF SAL I, with the specific aim of promoting private sector led growth and poverty reduction. Within the broad PRSP policy agenda, SAL II will focus on three broad areas; economic governance, private sector development, and rural development. The expected inflow of external program financing over the 2000-2003 period amount to UA 681.00 million (equivalent to US $ 882.30 million).