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Tanzania secures $1.1bn World Bank Investment Fund

On Thursday, Tanzania secured a $1.1 billion financing package from the World Bank, promoting inclusive growth and urban services.

The funds will enhance climate resilience in Dar es Salaam, supporting the city’s development and overall national progress.

The funding package consists of two vital components: $750 million for Development Policy Financing (DPF) and $385 million for Dar es Salaam Metropolitan Development Project (DMDP) Phase 2.

The primary objective of this initial package is to stimulate economic recovery led by the private sector by addressing structural obstacles to growth.

Key areas of focus include implementing reforms to improve the business climate, reinforcing state-owned entities (SOEs), and fostering greater transparency.

The second package aims to expand upon the achievements of the initial project, enhancing Dar es Salaam’s infrastructure and resilience further.

This initiative prioritizes climate-smart infrastructure, an integrated solid waste management system, and the development of robust urban institutions.

World Bank Vice President for Eastern and Southern Africa Victoria Kwakwa commended Tanzania’s stating,

“We applaud Tanzania’s efforts towards inclusive, private sector driven growth amidst global challenges.

“We are committed to supporting Tanzania’s reforms for immediate recovery and sustained economic progress.”

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The DPF targets key obstacles to private-sector growth, such as complex business registration, restricted credit access, and public debt challenges.

It also highlights social policies fostering inclusivity and economic resilience, and establishes a strong base for sustained development.

In DMDP Phase 2, the focus is on climate-smart infrastructure to reduce the city’s climate change vulnerability.

The primary goals are enhancing mobility, livability, and resilience.

These goals focus on improving the quality of life and strengthening resilience, with the initial phase already benefiting over 4 million people.

World Bank Country Director for Tanzania Nathan Belete emphasized the importance of climate action in Dar es Salaam.
“Tanzania remains highly vulnerable to climate change, and the DMDP Phase 2 aims to fortify Dar es Salaam while enhancing its livability and resilience.”