Tanzania First Poverty Reduction Support Credit

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This Poverty Reduction Support Credit (PRSC) builds on recent reforms undertaken by the United Republic of Tanzania and support the implementation of Tanzania's Poverty Reduction Strategy (PRS) as summarized in the Poverty Reduction Strategy Paper (PRSP) and subsequent updates undertaken with annual progress reports. The first PRSC focuses on private sector development and public sector management to complete and deepen the reform agenda defined under the Programmatic Structural Adjustment Credit (PSAC) and lays the ground for attacking income poverty more aggressively. It is envisaged that there will be at least two further single-tranche PRSCs. The operation will support the implementation of Tanzania's Poverty Reduction Strategy by: 1) accelerating growth with a key target therefore being to raise growth to between 6 and 7 percent in the medium term through promoting higher private investment, reducing the cost of doing business, and enhancing the efficiency of the Tanzanian economy; 2) broadening the impact of growth through Enhancement of the profitability of agriculture broadly and export products of rural origin in particular, through better quality, higher productivity, reduced marketing cost and improved access to markets; removal of remaining institutional constraints on rural activities; and removal of remaining institutional constraints on rural activities. 3) aligning public investment with PRS goals: and 4) Increasing efficiency of public service delivery, particularly accountability mechanisms combined with capacity building at the local and central government level.