Tanzania: We will work closely with the private sector, assures the government IMF

The Minister of Finance and Planning, Dr Mwigulu Nchemba, has assured the International Monetary Fund (IMF) that the government will continue to work closely with the private sector to accelerate the country’s development and allocate a significant share of the development budgets. next year in order to reduce the cost of living for citizens.

Dr Nchemba made the remarks in Dodoma on Monday, during a meeting with a team of IMF experts, led by the Deputy Chief of the East II Division of the IMF’s African Department, Charalambos Tsangarides.

The IMF expert team is in the country to assess the economic and political situation, especially on the preferable programs before the second allocation of funds to Tanzania to support the implementation of development projects.

This visit follows a recent meeting between President Samia Suluhu Hassan and the Executive Director of the IMF, Ms. Kristalina Georgieva, held in Washington, United States of America.

“One of the things they agreed was to send a team of experts into the country, to see how we can work together to create new financial policies that will help revive the economy from the effects of Covid-19. , as well as the ongoing war between Russia and Ukraine,” Dr Nchemba said.

He said that President Samia’s directive in the next budget is that more money be allocated to the most productive sectors, including agriculture, livestock, fisheries and entrepreneurship development, so that they can stimulate the economy and create jobs.

“The initiative will help revitalize and strengthen our economy, but will also boost employment by strengthening irrigation systems in the agricultural sector, the blue economy, improving the investment environment and the improvement plan business, improving the agricultural value chain and boosting tourism activities,” Dr Nchemba said.

For his part, Mr. Tsangarides, said his team will look into the sustainability of the national debt as well as the various policies which, if improved, will contribute significantly to propel the country’s economy.

He added that the program aims to strengthen Tanzania’s financial capacity to boost economic growth and strengthen social sectors such as health, education, water, as well as human resource development and sector development. private.

The IMF expert team will be in the country for two weeks, where they will meet with experts from the Ministry of Finance and Planning, the Bank of Tanzania (BoT) and various other stakeholders.

The IMF is pleased with the way Tanzania spent a 1.3 tri/- loan from the institution’s Rapid Credit Facility (RCF).

The money the country received in September last year was intended to address the social and economic impact of the Covid-19 pandemic, particularly on key sectors such as health, education, tourism, trade, transport, arts and entertainment.

Tanzania has well spent the interest free loan of 1.3 tri/- part of which has been channeled to construct 12,560 classrooms at a cost of 20 million/- each.

The new classrooms had eased congestion for about 600,000 students and solved the classroom shortage by 100% in secondary schools. With the money, the government has also built 3,000 satellite primary schools.

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