Tanzania – Poverty Reduction Support Loan II (PRSL II)

The proposed loan, amounting to UA 50 million, is aimed at providing budget support to the Government of Tanzania during the fiscal year 2006/07. It is designed to help the Government implement its Poverty Reduction Strategy and reach the goals articulated in the strategy. The implementation of the strategy will also help in realising the Millennium Development Goals (MDGs). The loan will support key policy actions outlined in the National Strategy for Growth and Reduction of Poverty (NSGRP) and will augment the resources that other donors are providing targeted at poverty reduction programmes. It will focus on policy actions in the following thematic areas: (i) the promotion of an enabling environment for rural development; (ii) the promotion of an enabling environment for private sector development; and (iii) improving the quality of life and social well-being. PRSL II will be implemented over 18 months.